apexmi~1

47
EN BANC APEX MINING CO., INC.,  Petitioner, - versus - SOUTHEAST MINDANAO GOLD MINING CORP., THE MINES ADJUDICATION BOARD, PROVINCIAL MINING REGULATORY BOARD (PMRB- DA V A O), MONKAYO INTEGRATED SMALL SCALE MI NERS ASS OCIA TION, INC. , ROSENDO VILLAFLOR, BALITE COMMUNAL PORT AL MINING COOPERATIVE, DAVAO UNITED MINERS COOPERATIVE, ANTO NIO DACUDAO, PUTI NG- BATO GOLD MINERS COOPERATIVE, ROMEO ALTAMERA, THELMA CA T APANG, LUIS GALANG, RENATO BASMILLO, FRANCISCO YOBIDO, EDUARDO GLORIA, EDWIN ASION, MACARIO HERNANDEZ, REYNALDO CARUBIO, ROBER TO BUNIALES, RUDY ESPORTONO, ROMEO CASTILLO, JOSE REA, GIL GANADO, PRIMITIVA LICAYAN, LETI CI A ALUEZA !" # JOEL BRILLANTES MANAGEMENT MINING CORPORATION,  Respondents. x - - - - - - - - - - - - - - - - - - - - - - - - - x G.R. N$%. &'&* + &'

Upload: angel-lai

Post on 03-Jun-2018

219 views

Category:

Documents


0 download

TRANSCRIPT

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 1/46

EN BANC

APEX MINING CO., INC.,

  Petitioner,

- versus -

SOUTHEAST MINDANAO GOLD

MINING CORP., THE MINES

ADJUDICATION BOARD,

PROVINCIAL MINING

REGULATORY BOARD (PMRB-

DAVAO), MONKAYO

INTEGRATED SMALL SCALE

MINERS ASSOCIATION, INC.,

ROSENDO VILLAFLOR, BALITECOMMUNAL PORTAL MINING

COOPERATIVE, DAVAO UNITED

MINERS COOPERATIVE,

ANTONIO DACUDAO, PUTING-

BATO GOLD MINERS

COOPERATIVE, ROMEO

ALTAMERA, THELMA

CATAPANG, LUIS GALANG,

RENATO BASMILLO,

FRANCISCO YOBIDO,

EDUARDO GLORIA, EDWIN

ASION, MACARIO HERNANDEZ,

REYNALDO CARUBIO,

ROBERTO BUNIALES, RUDY

ESPORTONO, ROMEO

CASTILLO, JOSE REA, GIL

GANADO, PRIMITIVA LICAYAN,

LETICIA ALUEZA !"# JOEL

BRILLANTES MANAGEMENTMINING CORPORATION,

  Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - - - x

G.R. N$%. &'&* + &'

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 2/46

BALITE COMMUNAL PORTAL

MINING COOPERATIVE,

  Petitioner,

- versus -

SOUTHEAST MINDANAO GOLD

MINING CORP., APEX MINING

CO., INC., THE MINES

ADJUDICATION BOARD,

PROVINCIAL MINING

REGULATORY BOARD (PMRB-

DAVAO), MONKAYO

INTEGRATED SMALL SCALE

MINERS ASSOCIATION, INC.,

ROSENDO VILLAFLOR, DAVAO

UNITED MINERS COOPERATIVE,

ANTONIO DACUDAO, PUTING-

BATO GOLD MINERSCOOPERATIVE, ROMEO

ALTAMERA, THELMA

CATAPANG, LUIS GALANG,

RENATO BASMILLO,

FRANCISCO YOBIDO, EDUARDO

GLORIA, EDWIN ASION,

MACARIO HERNANDEZ,

REYNALDO CARUBIO,

ROBERTO BUNIALES, RUDY

ESPORTONO, ROMEO

CASTILLO, JOSE REA, GIL

GANADO, PRIMITIVA LICAYAN,

LETICIA ALUEZA !"# JOEL

BRILLANTES MANAGEMENT

MINING CORPORATION,

  Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - - x

THE MINES ADJUDICATION

BOARD AND ITS MEMBERS, THEHON. VICTOR O. RAMOS

(C!/0!"), UNDERSECRETARY

VIRGILIO MARCELO (M1021/)

!"# DIRECTOR HORACIO

RAMOS (M1021/),

G.R. N$. &'&3-4

G.R. No. 152870-71

Present:

PUNO, C.J .,

CARPIO,

CORONA,* 

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 3/46

  Petitioners,

- versus -

SOUTHEAST MINDANAO GOLD

MINING CORPORATION,

  Respondent.

CARPIO ORA!"#,C$ICO-NA%ARIO,

&"!A#CO, 'R.,* 

 NAC$URA,**

!"ONAR(O-(" CA#)RO,

RION,

P"RA!)A,* 

"R#AIN,

("! CA#)I!!O,

AA(, +nd

&I!!ARAA, 'R., JJ .

Pro/+ted:

 Noeer 20, 200

x- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x

R " # O ! U ) I O N

C$ICO-NA%ARIO, J .:

)3is resoes t3e otion 4or reonsider+tion d+ted 12 '6 200, 4ied

 6 #ot3e+st ind+n+o God inin/ Corpor+tion #"9, o4 t3is Corts

(eision d+ted 2; 'ne 200 Ass+ied (eision9. )3e Ass+ied (eision

3ed t3+t t3e +ssi/nent o4 "xpor+tion Perit "P9 1;; in 4+or o4 #"

io+ted one o4 t3e onditions stip+ted in t3e perit, i.e., t3+t t3e s+e

s3+ e 4or t3e exsie se +nd ene4it o4 +ropper inin/ Corpor+tion

C9 or its d6 +t3ori<ed +/ents. #ine #" did not +i or sit

eidene t3+t it =+s + desi/n+ted +/ent o4 C, t3e +tter +nnot e

onsidered +s +n +/ent o4 t3e 4orer t3+t +n se "P 1;; +nd ene4it 4ro it.

It +so red t3+t t3e tr+ns4er o4 "P 1;; io+ted Presidenti+ (eree No. >;,

=3i3 re?ires t3+t t3e +ssi/nent o4 + inin/ ri/3t e +de =it3 t3e prior 

+ppro+ o4 t3e #eret+r6 o4 t3e (ep+rtent o4 "nironent +nd N+tr+

*  On o44ii+ e+e.* *  No p+rt.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 4/46

Resores ("NR9. oreoer, t3e Ass+ied (eision pointed ot t3+t "P

1;; expired 6 non-rene=+ sine it =+s not rene=ed e4ore or +4ter its

expir+tion. 

)3e Ass+ied (eision i@e=ise p3ed t3e +idit6 o4 Pro++tion

 No. 27 +sent +n6 ?estion +/+inst its +idit6. In ie= o4 t3is, +nd

onsiderin/ t3+t nder #etion 5 o4 Repi At No. 7>2, ot3er=ise

@no=n +s t3e inin/ At o4 15,B inin/ oper+tions in iner+

reser+tions +6 e ndert+@en diret6 6 t3e #t+te or t3ro/3 + ontr+tor,

t3e Cort deeed t3e isse o4 o=ners3ip o4 priorit6 ri/3t oer t3e ontested

(i=+=+ God Rs3 Are+ +s 3+in/ een oert+@en 6 t3e s+id

 pro++tion. )3s, it =+s 3ed in t3e Ass+ied (eision t3+t it is no=

=it3in t3e prero/+tie o4 t3e "xetie (ep+rtent to ndert+@e diret6 t3e

inin/ oper+tions o4 t3e dispted +re+ or to +=+rd t3e oper+tions to pri+te

entities indin/ petitioners Apex +nd +ite, set to +ppi+e +=s,

res +nd re/+tions, +nd proided t3+t t3ese pri+te entities +re ?+i4ied.

#" +so 4ied + otion 4or Re4err+ o4 C+se to t3e Cort  En Banc

+nd 4or Or+ Ar/ents d+ted 22 A/st 200.

Apex, 4or its p+rt, 4ied + otion 4or C+ri4i+tion o4 t3e Ass+ied

(eision, pr+6in/ t3+t t3e Cort eid+te on t3e (eisions prononeent

t3+t inin/ oper+tions, +re no=, t3ere4ore =it3in t3e 4 ontro o4 t3e

#t+te t3ro/3 t3e exetie r+n3.B oreoer, Apex +s@s t3is Cort to

order t3e ines +nd Geosienes o+rd G9 to +ept its +ppi+tion 4or 

+n expor+tion perit.

In its +ni4est+tion +nd otion d+ted 28 '6 200, +ite e3oes t3e

s+e onern +s t3+t o4 Apex on t3e +t+ t+@eoer 6 t3e #t+te o4 t3e

inin/ indstr6 in t3e dispted +re+ to t3e exsion o4 t3e pri+te setor. In

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 5/46

+ddition, +ite pr+6s 4or t3is Cort to diret G to +ept its +ppi+tion

4or +n expor+tion perit.

C+io +n+d, et al ., i@e=ise 4ied + otion 4or reonsider+tion +nd

 pr+6ed t3+t t3e dispted +re+ e +=+rded to t3e.

In t3e Resotion d+ted 15 Apri 2008, t3e Cort "n +n resoed to

+ept t3e inst+nt +ses. )3e Cort, in + resotion d+ted 2 Apri 2008,

resoed to set t3e +ses 4or Or+ Ar/ent on 1 '6 2008.

(rin/ t3e Or+ Ar/ent, t3e Cort identi4ied t3e 4oo=in/ prinip+

isses to e disssed 6 t3e p+rties:

1. Whether the transfer or assignment of Exploration Permit (EP) 133

b !!C to "E! #as vali$l ma$e #ithout violating an of the

terms an$ con$itions set forth in Presi$ential %ecree &o. '3 an$ 

 EP 133 itself.

. Whether   "outheast !in$anao !ining Corp. ac*uire$ a veste$ right 

over the $ispute$ area+ #hich constitutes a propert right protecte$ 

b the Constitution.

3. Whether the assaile$ %ecision $ate$ 3 June ,, of the -hir$  %ivision in this case is contrar to an$ overturns the earlier %ecision

of this Court in pex v. /arcia (/.0. &o. ,2+ 1 Jul 11+ 1

"C0 4) .

'. Whether the issuance of Proclamation &o. $eclaring the

$ispute$ area as mineral reservation out#eighs the claims of "E!+

 pex !ining Co. 5nc. an$ Balite Communal Portal !ining 

Cooperative over the %i#al#al /ol$ 0ush rea.

2. Whether the issue of the legalit6constitutionalit of Proclamation

 &o. #as belate$l raise$.

. ssuming that the legalit6constitutionalit of Proclamation &o.  

#as timel raise$+ #hether sai$ proclamation violates an of the

 follo#ing7

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 6/46

a. rticle 855+ "ection ' of the Constitution9

b. "ection 1 of 0epublic ct &o. 3,9

c. "ection 1' of the $ministrative Co$e of 149

$. "ection 2(a) of 0epublic ct &o. 249

e. "ection '(a) of 0epublic ct &o. 29 an$ 

 f. "ection + "ubsection .1. of Executive :r$er &o. 314 $ate$

 June ,,'.

A4ter 3e+rin/ t3e +r/ents o4 t3e p+rties, t3e Cort re?ired t3e to

sit t3eir respetie eor+nd+. eor+nd+ =ere +ordin/6 4ied 6

#", Apex, +ite +nd ines Addi+tion o+rd A9.

De s3+ resoe t3e seond isse e4ore d=ein/ on t3e 4irst, t3ird

+nd t3e rest o4 t3e isses.

MMC $/ SEM D# N$5 H!61 V1%51#

R75% O61/ 51 D8!98!9 G$9# R:%

A/1!

Petitioner #" i/oros6 +r/es t3+t  pex !ining Co.+ 5nc. v.

/arcia1 ested in C inin/ ri/3ts oer t3e dispted +re+. It +is t3+t

t3e inin/ ri/3ts t3+t C +?ired nder t3e s+id +se =ere t3e ones

+ssi/ned to #", +nd not t3e ri/3t to expore nder Cs "P 1;;. It

insists t3+t inin/ ri/3ts, one ot+ined, ontine to ssist re/+rdess o4 t3e

+idit6 o4 t3e expor+tion peritE t3s, inin/ ri/3ts +re independent o4 t3e

expor+tion perit +nd t3ere4ore do not expire =it3 t3e perit. #" insists

t3+t + inin/ ri/3t is + ested propert6 ri/3t t3+t not een t3e /oernent

+n t+@e +=+6. )o spport t3is t3esis, #" ites t3is Corts rin/ in

 !c%aniel v. pacible an$ Cuisia +nd in /ol$ Cree; !ining Corporation v.

 0o$rigue<+3 =3i3 =ere deided in 122 +nd 1;8, respetie6.

1  G.R. No. 205, 1 '6 11, 1 #CRA 278.2  >2 P3i. 7> 1229.;  P3i. 25 1;89.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 7/46

 !c%aniel  +nd /ol$ Cree;   !ining Corporation +re not in point.

In  11,  !c%aniel , petitioner t3erein, o+ted iner+s, i.e.+

 petroe, on +n nopied pi +nd +nd re/istered 3is iner+ +is

=it3 t3e o44ie o4 t3e inin/ reorder prs+nt to t3e P3iippine i o4 

102, =3ere + inin/ +i o+tor, soon +4ter o+tin/ t3e ine, eno6ed

 possessor6 ri/3ts =it3 respet to s3 inin/ +i =it3 or =it3ot + p+tent

t3ere4or. In t3+t +se, t3e A/ritre #eret+r6, 6 irte o4 At No. 2;2,

+pproed in 120, =3i3 proides t3+t + pi +nds +6 e e+sed 6 t3e

t3en #eret+r6 o4 A/ritre +nd N+tr+ Resores,B =+s +ot to /r+nt t3e

+ppi+tion 4or e+se o4 t3erein respondent, oer+ppin/ t3e inin/ +is o4 

t3e set petitioner. Petitioner +r/ed t3+t, ein/ + +id o+tor, 3e 3+d

ested ri/3t oer t3e pi +nd =3ere 3is inin/ +is =ere o+ted.

)3ere, t3e Cort red t3+t t3e inin/ +i per4eted nder t3e P3iippine

i o4 102, is propert6 in t3e 3i/3est sense o4 t3+t ter, =3i3 +6 e

sod +nd one6ed, +nd =i p+ss 6 desent, +nd is not t3ere4ore set to

t3e dispos+ o4 t3e Goernent.B )3e Cort t3en de+red t3+t sine

 petitioner 3+d +re+d6 per4eted 3is inin/ +i nder t3e P3iippine i

o4 102, + sse?ent st+tte, i.e.+  At No. 2;2, od not oper+te to

deprie 3i o4 3is +re+d6 per4eted inin/ +i, =it3ot io+tin/ 3is

 propert6 ri/3t.

/ol$ Cree; !ining reiter+ted t3e rin/ in  !c%aniel  t3+t + per4eted

inin/ +i nder  t3e P3iippine i o4 102 no on/er 4ored p+rt o4 t3e

 pi do+inE 3ene, s3 inin/ +i does not oe =it3in t3e

 pro3iition +/+inst t3e +ien+tion o4 n+tr+ resores nder #etion 1,

Artie FII o4 t3e 1;5 Constittion.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 8/46

Ge+ned 4ro t3e rin/ on t3e 4ore/oin/ +ses is t3+t 4or t3is += to

+pp6, it st e est+is3ed t3+t t3e inin/ +i st 3+e een per4eted

=3en t3e P3iippine i o4 102 =+s sti in 4ore +nd e44et. )3is is so

 e+se, ni@e t3e sse?ent +=s t3+t pro3iit t3e +ien+tion o4 inin/

+nds, t3e P3iippine i o4 102 s+ntioned t3e +ien+tion o4 inin/ +nds

to pri+te indiid+s. )3e P3iippine i o4 102 ont+ined proisions 4or,

+on/ +n6 ot3er t3in/s, t3e open +nd 4ree expor+tion, op+tion +nd

 pr3+se o4 iner+ deposits +nd t3e +nd =3ere t3e6 +6 e 4ond. It

de+red !99 6!9:!291 0"1/!9 #1;$%5% " ;:29< 9!"#% " 51 P9;;"1

I%9!"#%, 2$5 %:/61=1# !"# :"%:/61=1# > > > 5$ 21 ?/11 !"# $;1" 5$

1>;9$/!5$", $<<:;!5$", !"# ;:/<!%1, !"# 51 9!"# " 8< 51= !/1

?$:"# 5$ $<<:;!5$" !"# ;:/<!%1, 2= <5@1"% $? 51 U"51# S5!51%, $/ $? 

%!# I%9!"#% > > >.B>  Prs+nt to t3is +=, t3e 3oder o4 t3e iner+ +i is

entited to + t3e iner+s t3+t +6 ie =it3in 3is +i, proided 3e does

t3ree +ts: irst, 3e enters t3e inin/ +nd +nd o+tes + pot o4 /rond

e+srin/, =3ere possie, t not exeedin/, one t3os+nd 4eet in en/t3 6

one t3os+nd 4eet in re+dt3, in +s ne+r6 + ret+n/+r 4or +s possie. 5

#eond, t3e inin/ o+tor 3+s to reord t3e iner+ +i in t3e inin/

reorder =it3in t3irt6 ;09 d+6s +4ter t3e o+tion t3ereo4.  !+st6, 3e st

op6 =it3 t3e +nn+ +t+ =or@ re?ireent.7  Copete inin/ ri/3ts,

n+e6, t3e ri/3ts to expore, deeop +nd tii<e, +re +?ired 6 + inin/

o+tor 6 sip6 4oo=in/ t3e 4ore/oin/ re?ireents.

Dit3 t3e e44etiit6 o4 t3e 1;5 Constittion, =3ere t3e regalian

dotrine =+s +dopted, it =+s de+red t3+t + n+tr+ resores o4 t3e

P3iippines, indin/ iner+ +nds +nd iner+s, =ere propert6 eon/in/

to t3e #t+te.8  "xded, 3o=eer, 4ro t3e propert6 o4 pi do+in =ere

>   to; Big=We$ge !ining Co. v. 5nterme$iate ppellate Court , ;;0 P3i. 2>>, 22 19.5  Id. +t 22.  Id.7  Id. +t 2;.8  Id.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 9/46

t3e iner+ +nds +nd iner+s t3+t =ere o+ted +nd per4eted 6 irte o4 

t3e P3iippine i o4 102, sine t3e6 =ere +re+d6 onsidered pri+te

 properties o4 t3e o+tors.

Coon=e+t3 At No. 1;7 or t3e inin/ At o4 1;, =3i3

express6 +dopted t3e regalian dotrine 4oo=in/ t3e proision o4 t3e 1;5

Constittion, +so prosried t3e +ien+tion o4 inin/ +nds +nd /r+nted on6

e+se ri/3ts to inin/ +i+nts, =3o =ere pro3iited 4ro pr3+sin/ t3e

inin/ +i itse4.

D3en Presidenti+ (eree No. >;, =3i3 reised Coon=e+t3 At

 No. 1;7, =+s in 4ore in 17>, it i@e=ise reo/ni<ed t3e regalian dotrine

eodied in t3e 17; Constittion. It de+red t3+t + iner+ deposits +nd

 pi +nd pri+te +nds eon/ed to t3e st+te =3ie, nonet3eess,

reo/ni<in/ iner+ ri/3ts t3+t 3+d +re+d6 een existin/ nder t3e

P3iippine i o4 102 +s ein/ e6ond t3e prie= o4 t3e regalian

dotrine.10  )3e possessor6 ri/3ts o4 inin/ +i 3oders nder t3e

P3iippine i o4 102 re+ined int+t +nd e44etie, +nd s3 ri/3ts =ere

reo/ni<ed +s propert6 ri/3ts t3+t t3e 3oders od one6 or p+ss 6

desent.11 

In t3e inst+nt +ses, #" does not +er or proe t3+t its inin/ ri/3ts

3+d een per4eted +nd opeted =3en t3e P3iippine i o4 102 =+s sti

t3e oper+tie +=. #re6, it is ipossie 4or #" to sess46 +ssert t3+t

it +?ired inin/ ri/3ts oer t3e dispted +re+ in +ord+ne =it3 t3e s+e

 i, sine it =+s on6 in 18> t3+t C, #"s predeessor-in-interest,

4ied its de+r+tion o4 o+tions +nd its prospetin/ perit +ppi+tion in

opi+ne =it3 Presidenti+ (eree No. >;. It =+s on 1 '6 185 +nd 10

  Id. +t 2>.10  Id.11  Id. +t 27-28.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 10/46

+r3 18 t3+t + Prospetin/ Perit +nd "P 1;;, respetie6, =ere issed

to C. Considerin/ t3ese 4+ts, t3ere is no possiiit6 t3+t C or #"

od 3+e +?ired + per4eted inin/ +i nder t3e +spies o4 t3e

P3iippine i o4 102. D3+teer inin/ ri/3ts C 3+d t3+t it in+id6

tr+ns4erred to #" +nnot, 6 +n6 stret3 o4 i+/in+tion, e onsidered

inin/ ri/3tsB +s ontep+ted nder t3e P3iippine i o4 102 +nd

iort+i<ed in !c%aniel  +nd /ol$ Cree; !ining .

#" i@ens "P 1;; =it3 + idin/ perit. #" i@e=ise e?+tes its

spposed ri/3ts +tt+3ed to t3e expor+tion perit =it3 t3e ri/3ts t3+t +

 pri+te propert6 +nd o=ner 3+s to s+id +nd3odin/. )3is +n+o/6 3+s no

 +sis in +=. As e+rier disssed, nder t3e 1;5, 17; +nd 187

Constittions, n+tion+ =e+t3, s3 +s iner+ resores, +re o=ned 6 t3e

#t+te +nd not 6 t3eir disoerer. )3e disoerer or o+tor +n on6 deeop

+nd tii<e s+id iner+s 4or 3is o=n ene4it i4 3e 3+s opied =it3 + t3e

re?ireents set 4ort3 6 +ppi+e +=s +nd i4 t3e #t+te 3+s on4erred on

3i s3 ri/3t t3ro/3 perits, onessions or +/reeents. In ot3er =ords,

=it3ot t3e ipri+tr o4 t3e #t+te, +n6 inin/ +spir+nt does not 3+e +n6

de4initie ri/3t oer t3e iner+ +nd e+se, ni@e + pri+te +nd3odin/,

iner+ +nd is o=ned 6 t3e #t+te, +nd t3e s+e +nnot e +ien+ted to +n6

 pri+te person +s expiit6 st+ted in #etion 2, Artie FI& o4 t3e 187

Constittion:

A +nds o4 pi do+in, =+ters, 0"1/!9% > > > !"# !99 $51/

"!5:/!9 /1%$:/<1% !/1 $8"1# 2= 51 S5!51. Dit3 t3e exeption o4 

+/ritr+ +nds, + ot3er "!5:/!9 /1%$:/<1% %!99 "$5 21 !91"!51#."p3+ses sppied.9

rt3er, + oser srtin6 o4 t3e deed o4 +ssi/nent in 4+or o4 #"

ree+s t3+t C +ssi/ned to t3e 4orer t3e ri/3ts +nd interests it 3+d in "P

1;;, t3s:

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 11/46

1. )3+t 4or ON" P"#O P1.009 +nd ot3er ++e onsider+tion

reeied 6 t3e A##IGNOR 4ro t3e A##IGN"", t3e A##IGNOR 3ere6

ASSIGNS, TRANSFERS !"# CONVEYS :"5$ 51 ASSIGNEE

8!5161/ /75% $/ "51/1%5 51 ASSIGNOR 0!= !61 " 51 !/1!

%5:!51# " M$"!=$, D!6!$ #19 N$/51 !"# C!5119, D!6!$ O/1"5!9,

#1"5?1# !% E>;9$/!5$" P1/05 N$. &** +nd Appi+tion 4or + Perit toProspet in n+=+n, A/s+n de #r respetie6. "p3+sis sppied.9

It is eident t3+t =3+t C 3+d oer t3e dispted +re+ drin/ t3e+ssi/nent =+s +n expor+tion perit. Ce+r6, t3e ri/3t t3+t #" +?ired

=+s iited to expor+tion, on6 e+se C =+s + ere 3oder o4 +n

expor+tion perit. As preios6 exp+ined, #" did not +?ire t3e ri/3ts

in3erent in t3e perit, +s t3e +ssi/nent 6 C to #" =+s done in

io+tion o4 t3e ondition stip+ted in t3e perit, +nd t3e +ssi/nent =+s

e44eted =it3ot t3e +ppro+ o4 t3e proper +t3orit6 in ontr+ention o4 t3e

 proision o4 t3e inin/ += /oernin/ +t t3+t tie. In +ddition, t3e perit

expired on '6 1>. It is, t3ere4ore, ?ite e+r t3+t #" 3+s no ri/3t

oer t3e +re+.

"en +ssin/ arguen$o t3+t #" ot+ined t3e ri/3ts +tt+3ed in "P

1;;, s+id ri/3ts +nnot e onsidered +s propert6 ri/3ts proteted nder t3e

4nd+ent+ +=.

An expor+tion perit does not +to+ti+6 ripen into + ri/3t to

extr+t +nd tii<e t3e iner+sE 3 ess does it deeop into + ested ri/3t.

)3e 3oder o4 +n expor+tion perit on6 3+s t3e ri/3t to ondt expor+tion

=or@s on t3e +re+ +=+rded. Presidenti+ (eree No. >; de4ined

1>;9$/!5$" +s 51 1>!0"!5$" !"# "61%57!5$" $? 9!"#% %:;;$%1# 5$<$"5!" 6!9:!291 0"1/!9%, 2= #/99"7, 5/1"<"7, %!?5 %""7,

5:""19"7, 51%5 ;55"7 !"# $51/ 01!"%, ?$/ 51 ;:/;$%1 $? ;/$2"7 51

;/1%1"<1 $? 0"1/!9 #1;$%5% !"# 51 1>51"5 51/1$? .B "xpor+tion does

not inde deeopent +nd expoit+tion o4 t3e iner+s 4ond.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 12/46

(eeopent is de4ined 6 t3e s+e st+tte +s t3e %51;% "1<1%%!/9= 5!1"

5$ /1!< !" $/1 2$#= $/ 0"1/!9 #1;$%5 %$ 5!5 5 <!" 21 0"1# + =3ere+s

expoit+tion is de4ined +s  51 1>5/!<5$" !"# :59@!5$" $? 0"1/!9

#1;$%5%.B An expor+tion perit is not3in/ ore t3+n + ere ri/3t

+orded to its 3oder to e /ien priorit6 in t3e /oernents onsider+tion

in t3e /r+ntin/ o4 t3e ri/3t to deeop +nd tii<e t3e iner+s oer t3e +re+.

An expor+tion perit is ere6 in3o+te, in t3+t t3e 3oder sti 3+s to

op6 =it3 t3e ters +nd onditions eodied in t3e perit. )3is is

+ni4est in t3e +n/+/e o4 Presidenti+ (eree No. >;, t3s:

#e. 8. x x x )3e ri/3t to expoit t3erein s3+ e +=+rded 6 t3e

President nder s3 ters +nd onditions +s reoended 6 t3e

(iretor +nd +pproed 6 t3e #eret+r6  Provi$e$ , )3+t t3e persons or 

orpor+tions =3o ndertoo@ prospetin/ +nd expor+tion o4 s+id +re+ s3+ e /ien priorit6.

In  >a Bugal=B?laan -ribal ssociation+ 5nc. v. 0amos,12  t3is Cort

ep3+si<ed:

Prs+nt to #etion 20 o4 RA 7>2, +n expor+tion perit ere6/r+nts to + ?+i4ied person t3e ri/3t to ondt expor+tion 4or +

iner+s in spei4ied +re+s. S:< ! ;1/05 #$1% "$5 !0$:"5 5$ !"

!:5$/@!5$" 5$ 1>5/!<5 !"# <!//= $?? 51 0"1/!9 /1%$:/<1% 5!5 0!=

21 #%<$61/1#. x x x.

Prs+nt to #etion 2> o4 RA 7>2, +n expor+tion perit /r+ntee=3o deterines t3e oeri+ i+iit6 o4 + inin/ +re+ +6, =it3in t3e

ter o4 t3e perit, 4ie =it3 t3e G + de+r+tion o4 inin/ proet

4e+siiit6 +op+nied 6 + =or@ pro/r+ 4or deeopent. T1

!;;/$6!9 $? 51 0""7 ;/$1<5 ?1!%295= !"# <$0;9!"<1 85 $51/

/1:/101"5% $? RA 3 61%5% " 51 7/!"511 51 1><9:%61 /75 5$ !"

MPSA $/ !"= $51/ 0"1/!9 !7/1101"5, $/ 5$ !" FTAA.  Undersorin/

ors.9

12  >8 P3i. 75>, 828-82 200>9.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 13/46

)3e non-+?isition 6 C or #" o4 +n6 ested ri/3t oer t3e

dispted +re+ is spported 6 t3is Corts rin/ in "outheast !in$anao

/ol$ !ining Corporation v. Balite Portal !ining Cooperative13:

Ce+r6 t3en, t3e A;1> M""7 <!%1 ## "$5 "61%5 ;155$"1/

85 !"= #1?"51 /75 5$ 51 D8!98!9 0"1% 8< 5 <$:9# "$8 %15

:; !7!"%5 /1%;$"#1"5 BCMC !"# $51/ 0""7 7/$:;%.

Inident+6, it st i@e=ise e pointed ot t3+t nder noirst+nes +6 petitioners ri/3ts nder "P No. 1;; e re/+rded +s

tot+ +nd +sote. As orret6 3ed 6 t3e Cort o4 Appe+s in its

3+en/ed deision, "P No. 1;; ere6 eidenes + priie/e /r+nted 6t3e #t+te, =3i3 +6 e +ended, odi4ied or resinded =3en t3e

n+tion+ interest so re?ires. x x x. Undersorin/ sppied.9

Un4ortn+te6, #" +nnot e /ien priorit6 to deeop +nd expoit

t3e +re+ oered 6 "P 1;; e+se, +s disssed in t3e +ss+ied (eision,

"P 1;; expired 6 non-rene=+ on '6 1>. Aso, +s +re+d6 entioned,

t3e tr+ns4er o4 t3e s+id perit to #" =+s =it3ot e/+ e44et e+se it

=+s done in ontr+ention o4 Presidenti+ (eree No. >; =3i3 re?ires

 prior +ppro+ 4ro t3e proper +t3orit6. #ip6 tod, #" 3ods not3in/

4or it to e entited to ondt inin/ +tiities in t3e dispted iner+ +nd.

#" =+nts to ipress on t3is Cort t3+t its +e/ed inin/ ri/3ts, 6irte o4 its ein/ + tr+ns4eree o4 "P 1;;, is sii+r to + in+ni+ +nd

)e3ni+ Assist+ne A/reeent )AA9 o4 + 4orei/n ontr+tor, =3i3

erits protetion 6 t3e de proess +se o4 t3e Constittion. #" ites

 >a Bugal=B?laan -ribal ssociation+ 5nc. v. 0amos,1> +s 4oo=s:

)o s+6 t3+t +n )AA is st i@e + ere tier iense or perit

+nd does not inoe ontr+t or propert6 ri/3ts =3i3 erit protetion 6t3e de proess +se o4 t3e Constittion, +nd +6 t3ere4ore e reo@ed

or +need in t3e in@ o4 +n e6e, is to +dopt + =e-ni/3 on4is+tor6st+neE +t t3e er6 e+st, it is do=nri/3t disissie o4 t3e propert6 ri/3ts o4 

 sinesspersons +nd orpor+te entities t3+t 3+e inestents in t3e inin/

1;  >2 P3i. 8, 82 20029.1>  #pr+ note 12 +t 85.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 14/46

indstr6, =3ose inestents, oper+tions +nd expenditres do ontrite tot3e /ener+ =e4+re o4 t3e peope, t3e o44ers o4 /oernent, +nd t3e

stren/t3 o4 t3e eono6. x x x.

A/+in, t3is +r/ent is not eritorios. #" did not +?ire t3e

ri/3ts +tt+3ed to "P 1;;, sine t3eir tr+ns4er =+s =it3ot e/+ e44et.

Gr+ntin/ 4or t3e s+@e o4 +r/ent t3+t #" =+s + +id tr+ns4eree o4 t3e

 perit, its ri/3t is not t3+t o4 + inin/ ontr+tor. An 1>;9$/!5$" ;1/05

7/!"511  is ested =it3 t3e /75 5$ <$"#:<5 1>;9$/!5$" $"9=, =3ie +n

FTAA $/ MPSA <$"5/!<5$/  is !:5$/@1# 5$ 1>5/!<5 !"# <!//= $?? 51

0"1/!9 /1%$:/<1%  t3+t +6 e disoered in t3e +re+.15  An expor+tion

 perit 3oder sti 3+s to op6 =it3 t3e inin/ proet 4e+siiit6 +nd

ot3er re?ireents nder t3e inin/ +=. It 3+s to ot+in +ppro+ o4 s3

+opis3ed re?ireents 4ro t3e +ppropri+te /oernent +/enies.

Upon ot+inin/ t3is +ppro+, t3e expor+tion perit 3oder 3+s to 4ie +n

+ppi+tion 4or +n )AA or +n P#A +nd 3+e it +pproed +so. Unti t3e

P#A +ppi+tion o4 #" is +pproed, it +nnot +=46 +i t3+t it

 possesses t3e ri/3ts o4 +n P#A or )AA 3oder, t3s:

x x x prior to t3e iss+ne o4 s3 )AA or iner+ +/reeent, t3e

expor+tion perit /r+ntee or prospetie ontr+tor9 +nnot 6et e

deeed to 3+e entered into +n6 ontr+t or +/reeent =it3 t3e #t+te x xx.1

t +/+in, #" is not ?+i4ied to +pp6 4or +n )AA or +n6 iner+

+/reeent, onsiderin/ t3+t it is not + 3oder o4 + +id expor+tion perit,

sine "P 1;; expired 6 non-rene=+ +nd t3e tr+ns4er to it o4 t3e s+e

 perit 3+s no e/+ +e.

ore iport+nt6, +ssin/ arguen$o  t3+t #" 3+s + +id

expor+tion perit, it +nnot +ssert +n6 inin/ ri/3t oer t3e dispted +re+,

15   "outheast !in$anao /ol$ !ining Corporation v. Balite Portal !ining Cooperative ,spr+ note 1; +t 82-8;.

1  Id.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 15/46

sine t3e #t+te 3+s t+@en oer t3e inin/ oper+tions t3erein, prs+nt to

Pro++tion No. 27 issed 6 t3e President on 25 Noeer 2002. )3e

Cort 3+s onsistent6 red t3+t t3e n+tre o4 + n+tr+ resore expor+tion

 perit is +n+o/os to t3+t o4 + iense. In  0epublic v. 0osemoor !ining 

an$ %evelopment Corporation, t3is Cort +rti+ted:

!i@e tier perits, 0""7 1>;9$/!5$" ;1/05% #$ "$5 61%5 " 51

7/!"511 !"= ;1/0!"1"5 $/ //16$<!291 /75 85" 51 ;:/618 $? 51

"$"-0;!/01"5 $? <$"5/!<5 !"# #:1 ;/$<1%% <9!:%1% $? 51

C$"%55:5$", sine t3e #t+te, nder its +-enop+ssin/ poie po=er,+6 +ter, odi46 or +end t3e s+e, in +ord+ne =it3 t3e de+nds o4 

t3e /ener+ =e4+re.17  "p3+sis sppied.9

As + ere iense or priie/e, +n expor+tion perit +n e +id6

+ended 6 t3e President o4 t3e Repi =3en n+tion+ interests sit+6

neessit+te. )3e Cort instrted t3s:

)ier ienses, perits +nd iense +/reeents +re t3e prinip+

instrents 6 =3i3 t3e #t+te re/+tes t3e tii<+tion +nd disposition o4 4orest resores to t3e end t3+t t3e pi =e4+re is prooted. x x x )3e6

+6 e +id6 +ended, odi4ied, rep+ed or resinded 6 t3e C3ie4 

"xetie =3en n+tion+ interests so re?ire.18 

Reo/ni<in/ t3e iport+ne o4 t3e ontr6s n+tr+ resores, not

on6 4or n+tion+ eonoi deeopent, t +so 4or its serit6 +nd

n+tion+ de4ense, #etion 5 o4 Repi At No. 7>2 epo=ers t3e

President, =3en t3e n+tion+ interest so re?ires, to est+is3 iner+

reser+tions =3ere inin/ oper+tions s3+ e ndert+@en diret6 6 t3e

#t+te or t3ro/3 + ontr+tor, vi< :

#"C 5. iner+ Reser+tions. H D3en t3e n+tion+ interest so

re?ires, s3 +s =3en t3ere is + need to presere str+te/i r+= +teri+s4or indstries riti+ to n+tion+ deeopent, or ert+in iner+s 4or 

sienti4i, tr+ or eoo/i+ +e, t3e President +6 est+is3 iner+

reser+tions pon t3e reoend+tion o4 t3e (iretor t3ro/3 t3e

17  G.R. No. 1>27, ;0 +r3 200>, >2 #CRA 517, 5;0.18  Id.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 16/46

#eret+r6. M""7 $;1/!5$"% " 1>%5"7 0"1/!9 /1%1/6!5$"% !"#%:< $51/ /1%1/6!5$"% !% 0!= 51/1!?51/ 21 1%5!29%1#, %!99 21

:"#1/5!1" 2= 51 D1;!/501"5 $/ 5/$:7 ! <$"5/!<5$/ x x x .

"p3+sis sppied.9

(e to t3e pressin/ onerns in t3e (i=+=+ God Rs3 Are+ ro/3t

+ot 6 nre/+ted s+ to edi-s+e inin/ oper+tions +sin/

eoo/i+, 3e+t3 +nd pe+e +nd order proes, t3e President, on 25

 Noeer 2002, issed Pro++tion No. 27, =3i3 de+red t3e +re+ +s +

iner+ reser+tion +nd +s +n enironent+6 riti+ +re+. )3is exetie

4i+t =+s +ied +t preentin/ t3e 4rt3er dissip+tion o4 t3e n+tr+

enironent +nd r+tion+i<in/ t3e inin/ oper+tions in t3e +re+ in order to

+tt+in +n order6 ++ne et=een soio-eonoi /ro=t3 +nd enironent+

 protetion. )3e +re+ ein/ + iner+ reser+tion, t3e "xetie (ep+rtent

3+s 4 ontro oer it prs+nt to #etion 5 o4 Repi At No. 7>2. It+n eit3er diret6 ndert+@e t3e expor+tion, deeopent +nd tii<+tion o4 

t3e iner+s 4ond t3erein, or it +n enter into +/reeents =it3 ?+i4ied

entities. #ine t3e "xetie (ep+rtent no= 3+s ontro oer t3e

expor+tion, deeopent +nd tii<+tion o4 t3e resores in t3e dispted

+re+, #"s expor+tion perit, +ssin/ t3+t it is sti +id, 3+s een

e44etie6 =it3dr+=n. )3e exerise o4 s3 po=er t3ro/3 Pro++tion

 No. 27 is in +ord =it3  @ura regalia+ =3ere t3e #t+te exerises its

soerei/n po=er +s o=ner o4 +nds o4 t3e pi do+in +nd t3e iner+

deposits 4ond =it3in. )3s, Artie FII, #etion 2 o4 t3e 187 Constittion

ep3+si<es:

#"C. 2. A +nds o4 t3e pi do+in, =+ter, iner+s, o+, petroe, +nd ot3er iner+ ois, + 4ores o4 potenti+ ener/6, 4is3eries,

4orests or tier, =idi4e, 4or+ +nd 4+n+, +nd ot3er n+tr+ resores +re

o=ned 6 t3e #t+te. Dit3 t3e exeption o4 +/ritr+ +nds, + ot3er n+tr+ resores s3+ not e +ien+ted. T1 1>;9$/!5$", #1619$;01"5,

!"# :59@!5$" $? "!5:/!9 /1%$:/<1% %!99 21 :"#1/ 51 ?:99 <$"5/$9 !"#

%:;1/6%$" $? 51 S5!51. T1 S5!51 0!= #/1<59= :"#1/5!1 %:<

!<5651%, $/ 5 0!= 1"51/ "5$ <$-;/$#:<5$", $"5 61"5:/1, $/

;/$#:<5-%!/"7 !7/1101"5% 85 F9;"$ <5@1"%, $/ <$/;$/!5$"% $/

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 17/46

!%%$<!5$"% !5 91!%5 %>5= ;1/ <1"5:0 $? 8$%1 <!;5!9 % $8"1# 2=%:< <5@1"%. "p3+sis sppied.9

rt3erore, s+id pro++tion +nnot e denoned +s o44ensie to t3e

4nd+ent+ += e+se t3e #t+te is s+ntioned to do so in t3e exerise o4 

its poie po=er.1  )3e isses on 3e+t3 +nd pe+e +nd order, +s =e t3e

de+dene o4 t3e 4orest resores ro/3t +ot 6 nre/+ted inin/ in

t3e +re+, +re +tters o4 n+tion+ interest. )3e de+r+tion o4 t3e C3ie4 

"xetie +@in/ t3e +re+ + iner+ reser+tion, t3ere4ore, is s+ntioned 6

#etion 5 o4 Repi At No. 7>2.

T1 A%%7"01"5 $? EP N$. &** 2= MMC

" F!6$/ $? SEM V$9!51# S1<5$" 3 $? 

P/1%#1"5!9 D1</11 N$. * !"# 51

T1/0% !"# C$"#5$"% S15 F$/5 " 51

P1/05

#" +is t3+t t3e +ppro+ re?ireent nder #etion 7 o4 

Presidenti+ (eree No. >; is not +ppi+e to t3is +se, e+se C

neit3er +ppied 4or nor =+s /r+nted + inin/ e+se ontr+t. )3e s+id

 proision st+tes:

#"C. 7.   Assignment of Mining Rights. H A 0""7 91!%1

<$"5/!<5 $/ !"= "51/1%5 51/1" %!99 "$5 21 5/!"%?1//1#, !%%7"1#, $/

%:291!%1# 85$:5 51 ;/$/ !;;/$6!9 $? 51 S1</15!/=  Provi$e$ , t3+t

s3 tr+ns4er, +ssi/nent or se+se +6 e +de on6 to + ?+i4ied

 person possessin/ t3e resores +nd +p+iit6 to ontine t3e inin/

oper+tions o4 t3e essee +nd t3+t t3e +ssi/nor 3+s opied =it3 + t3eoi/+tions o4 t3e e+se:  Provi$e$ ,  further , )3+t s3 tr+ns4er or 

+ssi/nent s3+ e d6 re/istered =it3 t3e o44ie o4 t3e inin/ reorder 

onerned. "p3+sis sppied.9

"xpor+tion Perit 1;; =+s issed in 4+or o4 C on 10 +r3

18, =3en Presidenti+ (eree No. >; =+s sti t3e /oernin/ +=.

Presidenti+ (eree No. >; pert+ins to t3e od s6ste o4 expor+tion,

1  Id +t 5;1.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 18/46

deeopent +nd tii<+tion o4 n+tr+ resores t3ro/3 iense,

onession or e+se.B20

Prs+nt to t3is +=, + inin/ e+se ontr+t on4ers on t3e essee or 

3is sessors t3e ri/3t to extr+t, to reoe, proess +nd tii<e t3e iner+

deposits 4ond on or nderne+t3 t3e sr4+e o4 3is inin/ +is oered 6

t3e e+se. )3e essee +6 +so enter into + serie ontr+t 4or t3e

1>;9$/!5$", deeopent +nd expoit+tion o4 t3e iner+s 4ro t3e +nds

oered 6 3is e+se, to =it:

 

#"C. >>. A 0""7 91!%1 <$"5/!<5  s3+ /r+nt to t3e essee, 3is

3eirs, sessors, +nd +ssi/ns t3e ri/3t to extr+t + iner+ deposits

4ond on or nderne+t3 t3e sr4+e o4 3is inin/ +is oered 6 t3e

e+se, ontined erti+6 do=n=+rdE to reoe, proess, +nd ot3er=isetii<e t3e iner+ deposits 4or 3is o=n ene4itE +nd to se t3e +nds

oered 6 t3e e+se 4or t3e prpose or prposes spei4ied t3erein x x x)3+t ! 91%%11 0!= $" % $8" $/ 5/$:7 51 G$61/"01"5, 1"51/ "5$ !

%1/6<1 <$"5/!<5 ?$/ 51 1>;9$/!5$", deeopent +nd expoit+tion o4 

3is +is +nd t3e proessin/ +nd +r@etin/ o4 t3e prodt t3ereo4, set

to t3e res +nd re/+tions t3+t s3+ e pro/+ted 6 t3e (iretor, =it3t3e +ppro+ o4 t3e #eret+r6 x x x. "p3+ses sppied.9

In ot3er =ords, t3e essees interests +re not on6 iited to t3e

extr+tion or tii<+tion o4 t3e iner+s in t3e ontr+t +re+, t +so to

inde t3e ri/3t to expore +nd deeop t3e s+e. )3is ri/3t to expore t3e

inin/ +i or t3e ontr+t +re+ is deried 4ro t3e expor+tion perit d6

issed 6 t3e proper +t3orit6. An expor+tion perit is, t3s, oered 6

t3e ter an other interest therein.B #etion 7 is entited,  Assignment of 

 Mining Rights.B )3is +one /ies + 3int t3+t e4ore inin/ ri/3ts -- n+e6,

t3e ri/3ts to expore, deeop +nd tii<e -- +re tr+ns4erred or +ssi/ned, prior 

+ppro+ st e ot+ined 4ro t3e ("NR #eret+r6. An expor+tion perit,

t3s, +nnot e +ssi/ned =it3ot t3e ipri+tr o4 t3e #eret+r6 o4 t3e

("NR.

20   !iners ssociation of the Philippines+ 5nc. v. Aactoran+ Jr ., ;10 P3i. 11;, 1;0 159.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 19/46

It is instrtie to note t3+t nder #etion 1; o4 Presidenti+ (eree

 No. >;, t3e prospetin/ +nd expor+tion o4 iner+s in /oernent

reser+tions, s3 +s 4orest reser+tions, +re pro3iited, exept =it3 t3e

 perission o4 t3e /oernent +/en6 onerned. It is t3e /oernent

+/en6 onerned t3+t 3+s t3e prero/+tie to ondt prospetin/,

expor+tion +nd expoit+tion o4 s3 resered +nds.21  It is on6 in inst+nes

=3erein s+id /oernent +/en6, in t3is +se t3e re+ o4 ines, +nnot

ndert+@e s+id inin/ oper+tions t3+t ?+i4ied persons +6 e +o=ed 6

t3e /oernent to ndert+@e s3 oper+tions.  P&:C=E%C v. eneracion+

 Jr . otines t3e 4ie re?ireents 4or +?irin/ inin/ ri/3ts in resered

+nds nder Presidenti+ (eree No. >;: 19 + prospetin/ perit 4ro t3e

+/en6 t3+t 3+s risdition oer t3e +ndE 29 +n expor+tion perit 4ro t3e

re+ o4 ines +nd Geo-#ienes G#9E ;9 i4 t3e expor+tion ree+s

t3e presene o4 oeri+ deposit, +ppi+tion to G# 6 t3e perit

3oder 4or t3e exsion o4 t3e +re+ 4ro t3e reser+tionE >9 + /r+nt 6 t3e

President o4 t3e +ppi+tion to exde t3e +re+ 4ro t3e reser+tionE +nd 59

+ inin/ +/reeent e+se, iense or onession9 +pproed 6 t3e ("NR 

#eret+r6.

$ere, C et t3e 4irst +nd seond re?ireents +nd ot+ined +n

expor+tion perit oer t3e dispted 4orest resered +nd. At3o/3 C

sti 3+s to proe to t3e /oernent t3+t it is ?+i4ied to deeop +nd tii<e

t3e set iner+ +nd, +s it 3+s 6et to /o t3ro/3 t3e re+inin/ proess

 e4ore it +n sere + e+se +/reeent, nonet3eess, it is ond to 4oo=

#etion 7 o4 Presidenti+ (eree No. >;. )3e o/i is not 3+rd to disern.

I4 + e+se 3oder, =3o 3+s +re+d6 deonstr+ted to t3e /oernent 3is

+p+it6 +nd ?+i4i+tions to 4rt3er deeop +nd tii<e t3e iner+s =it3in

21    P&:C=Energ %evelopment Corporation (P&:C=E%C) v. eneracion+ Jr.+  G.R. No.12820, ;0 Noeer 200, 50 #CRA ;, 10.

22  Id. +t 107-110.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 20/46

t3e ontr+t +re+, is pro3iited 4ro tr+ns4errin/ 3is inin/ ri/3ts ri/3ts to

expore, deeop +nd tii<e9, =it3 ore re+son =i t3is prosription +pp6

=it3 extr+ 4ore to + ere expor+tion perit 3oder =3o is 6et to ex3iit 3is

?+i4i+tions in ondtin/ inin/ oper+tions. )3e r+tion+e 4or t3e

+ppro+ re?ireent nder #etion 7 o4 Presidenti+ (eree No. >; is not

3+rd to see. "xpor+tion perits +re strit6 /r+nted to entities or indiid+s

 possessin/ t3e resores +nd +p+iit6 to ndert+@e inin/ oper+tions.

inin/ indstr6 is + +or spport o4 t3e n+tion+ eono6 +nd t3e

ontinos +nd intensi4ied expor+tion, deeopent +nd =ise tii<+tion o4 

inin/ resores is it+ 4or n+tion+ deeopent. or t3is re+son,

Presidenti+ (eree No. >; +@es it iper+tie t3+t in +=+rdin/ inin/

oper+tions, on6 persons possessin/ t3e 4in+ni+ resores +nd te3ni+

s@i 4or odern expor+tor6 +nd deeopent te3ni?es +re enor+/ed to

ndert+@e t3e expor+tion, deeopent +nd tii<+tion o4 t3e ontr6s

n+tr+ resores. )3e pre+e o4 Presidenti+ (eree No. >; proides

t3s:

D$"R"A#, e44etie +nd ontinos inin/ oper+tions re?ireonsider+e ot+6s o4 +pit+ +nd resores, +nd +@e it iper+tie t3+t

 persons possessin/ t3e 4in+ni+ resores +nd te3ni+ s@is 4or odern

expor+tor6 +nd deeopent te3ni?es e enor+/ed to ndert+@e t3eexpor+tion, deeopent +nd expoit+tion o4 or iner+ resoresE

)3e Cort 3+s s+id t3+t + pre+eB is t3e @e6 to nderst+ndin/ t3e st+tte,

=ritten to open t3e inds o4 t3e +@ers to t3e is3ie4s t3+t +re to e

reedied, +nd t3e prposes t3+t +re to e +opis3ed, 6 t3e proisions o4 

t3e st+tte.2;  As s3, =3en t3e st+tte itse4 is +i/os +nd di44it to

interpret, t3e pre+e +6 e resorted to +s + @e6 to nderst+ndin/ t3e

st+tte.

2;   Estra$a v. Escritor , >55 P3i. >11, 5 200;9.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 21/46

Indit+6, =it3ot t3e srtin6 6 t3e /oernent +/en6 +s to t3e

?+i4i+tions o4 t3e =od-e tr+ns4eree o4 +n expor+tion perit, t3e s+e

+6 4+ into t3e 3+nds o4 non-?+i4ied entities, =3i3 =od e onter-

 prodtie to t3e deeopent o4 t3e inin/ indstr6. It +nnot e

oerep3+si<ed t3+t t3e expor+tion, deeopent +nd tii<+tion o4 t3e

ontr6s n+tr+ resores +re +tters it+ to t3e pi interest +nd t3e

/ener+ =e4+reE 3ene, t3eir re/+tion st e o4 tost onern to t3e

/oernent, sine t3ese n+tr+ resores +re not on6 riti+ to t3e n+tions

serit6, t t3e6 +so ensre t3e ontr6s sri+ +s + i+e +nd soerei/n

repi.2> 

)3e +ppro+ re?ireent o4 t3e #eret+r6 o4 t3e ("NR 4or t3e

+ssi/nent o4 expor+tion perits is ostered 6 #etion 25 o4 Repi At

 No. 7>2 ot3er=ise @no=n +s t3e P3iippine inin/ At o4 159, =3i3

 proides t3+t:

#e. 25. -ransfer or ssignment . H An expor+tion perit +6 e

tr+ns4erred or +ssi/ned to + ?+i4ied person set to t3e +ppro+ o4 t3e

#eret+r6 pon t3e reoend+tion o4 t3e (iretor.

#" 4rt3er posits t3+t #etion 7 o4 Presidenti+ (eree No. >;,=3i3 re?ires t3e prior +ppro+ o4 t3e ("NR =3en t3ere is + tr+ns4er o4 

inin/ ri/3ts, +nnot e +ppied to t3e +ssi/nent o4 "P 1;; exeted 6

C in 4+or o4 #" e+se drin/ t3e exetion o4 t3e (eed o4 

Assi/nent on 1 er+r6 1>, "xetie Order No. 2725 e+e t3e

/oernin/ st+tte, in+s3 +s t3e +tter +ro/+ted t3e od inin/ s6ste --

i.e., iense, onession or e+se -- =3i3 =+s esposed 6 t3e 4orer.

)3is ontention is not =e t+@en. D3ie Presidenti+ (eree No. >;

3+s +re+d6 een repe+ed 6 "xetie Order No. 27, t3e +dinistr+tie

2>   !iners ssociation of the Philippines+ 5nc. v. Aactoran+ Jr ., ;10 P3i. 11;, 1;0-1;1 159.25  Pro/+ted on 25 '6 187.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 22/46

+spet o4 t3e 4orer += nonet3eess re+ins +ppi+e. $ene, t3e tr+ns4er 

or +ssi/nent o4 expor+tion perits sti needs t3e prior +ppro+ o4 t3e

#eret+r6 o4 t3e ("NR. As red in !iners ssociation of the Philippines+

 5nc. v. Aactoran+ Jr .2:

Presidenti+ (eree No. >;, +s +ended, pert+ins to t3e od s6ste o4 

expor+tion, deeopent +nd tii<+tion o4 n+tr+ resores t3ro/3

iense, onession or e+seB =3i3, 3o=eer, 3+s een dis+o=ed 6Artie FII, #etion 2 o4 t3e 187 Constittion. 6 irte o4 t3e s+id

onstittion+ +nd+te +nd its ipeentin/ +=, "xetie Order No.27, =3i3 sperseded "xetie Order No. 211, t3e proisions de+in/ on

iense, onession, or e+seB o4 iner+ resores nder Presidenti+

(eree No. >;, +s +ended, +nd ot3er existin/ inin/ +=s +re deeed

repe+ed +nd, t3ere4ore, e+sed to oper+te +s t3e /oernin/ +=. In ot3er =ords, " !99 $51/ !/1!% $? !#0"%5/!5$" !"# 0!"!7101"5 $? 

0"1/!9 9!"#%, 51 ;/$6%$"% $? P/1%#1"5!9 D1</11 N$. *, !%

!01"#1#, !"# $51/ 1>%5"7 0""7 9!8%, %599 7$61/". "p3+sissppied.9

 Not on6 did t3e +ssi/nent o4 "P 1;; to #" io+te #etion 7 o4 

Presidenti+ (eree No. >;, it i@e=ise tr+ns/ressed one o4 t3e onditions

stip+ted in t3e /r+nt o4 t3e s+id perit. )3e 4oo=in/ ters +nd

onditions +tt+3ed to "P 1;; +re +s 4oo=s:27

1. )3+t t3e perittee s3+ +ide 6 t3e =or@ pro/r+ sitted

=it3 t3e +ppi+tion or st+teents +de +ter in spport t3ereo4, +nd =3i3s3+ e onsidered +s onditions +nd essenti+ p+rts o4 t3is peritE

2. )3+t perittee s3+ +int+in + opete reord o4 + +tiities+nd +ontin/ o4 + expenditres inrred t3erein set to periodi

inspetion +nd eri4i+tion +t re+son+e inter+s 6 t3e re+ o4 ines

+t t3e expense o4 t3e +ppi+ntE

;. )3+t t3e perittee s3+ sit to t3e (iretor o4 ines =it3in

15 d+6s +4ter t3e end o4 e+3 +end+r ?+rter + report nder o+t3 o4 + 4

+nd opete st+teent o4 t3e =or@ done in t3e +re+ oered 6 t3e

 peritE

>. )3+t t3e ter o4 t3is perit s3+ e 4or t=o 29 6e+rs to ee44etie 4ro t3is d+te, rene=+e 4or t3e s+e period +t t3e disretion o4 

t3e (iretor o4 ines +nd pon re?est o4 t3e +ppi+ntE

2  #pr+ note 2> +t 1;0.27  Reords, &o. 2, pp. 8>-85.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 23/46

5. )3+t t3e (iretor o4 ines +6 +t +n6 tie +ne t3is perit

4or io+tion o4 its proision or in +se o4 troe or re+3 o4 pe+e

+risin/ in t3e +re+ set 3ereo4 6 re+son o4 on4itin/ interests =it3ot

+n6 responsiiit6 on t3e p+rt o4 t3e /oernent +s to expenditres 4or expor+tion t3+t i/3t 3+e een inrred, or +s to ot3er d++/es t3+t

i/3t 3+e een s44ered 6 t3e peritteeE

. )3+t t3is perit s3+ e 4or t3e 1><9:%61 :%1 !"# 21"1?5 $? 

51 ;1/05511 $/ % #:9= !:5$/@1# !71"5%  +nd s3+ e sed 4or 

iner+ expor+tion prposes on6 +nd 4or no ot3er prpose.

It st e noted t3+t nder #etion 028 o4 Presidenti+ (eree No.

>;, =3i3 =+s t3e +ppi+e st+tte drin/ t3e iss+ne o4 "P 1;;, t3e

("NR #eret+r6, t3ro/3 t3e (iretor o4 t3e re+ o4 ines +nd

Geosienes, =+s 3+r/ed =it3 +rr6in/ ot t3e s+id +=. Aso, nder 

Coon=e+t3 At No. 1;, +so @no=n +s An At Cre+tin/ t3e re+ o4 

ines,B =3i3 =+s +pproed on 7 Noeer 1;, t3e (iretor o4 ines3+d t3e diret 3+r/e o4 t3e +dinistr+tion o4 t3e iner+ +nds +nd iner+sE

+nd o4 t3e sre6, +ssi4i+tion, e+se or +n6 ot3er 4or o4 onession or 

disposition t3ereo4 nder t3e inin/ At.2  )3is po=er o4 +dinistr+tion

inded t3e po=er to presrie ters +nd onditions in /r+ntin/ expor+tion

 perits to ?+i4ied entities.

)3s, in t3e /r+nt o4 "P 1;; in 4+or o4 t3e C, t3e (iretor o4 t3e

G +ted =it3in 3is po=er in +6in/ do=n t3e ters +nd onditions

+ttend+nt t3ereto. C +nd #" did not dispte t3e re+son+eness o4 s+id

onditions.

ite onspios is t3e 4+t t3+t neit3er C nor #" denied t3+t

t3e6 =ere n+=+re o4 t3e ters +nd onditions +tt+3ed to "P 1;;. C

+nd #" did not present +n6 eidene t3+t t3e6 oeted to t3ese onditions.

Indit+6, C =3oe3e+rted6 +epted t3ese ters +nd onditions,28   "xetie O44ier. - )3e #eret+r6, t3ro/3 t3e (iretor, s3+ e t3e "xetie O44ier 

3+r/ed =it3 +rr6in/ ot t3e proisions o4 t3is (eree. x x x.2   #etion ;, Coon=e+t3 At No. 1;.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 24/46

=3i3 4ored p+rt o4 t3e /r+nt o4 t3e perit. C +/reed to +ide 6 t3ese

onditions. It st e +ent+ted t3+t + p+rt6 to + ontr+t +nnot den6 its

+idit6, =it3ot otr+/e to ones sense o4 stie +nd 4+irness, +4ter eno6in/

its ene4its.;0  D3ere p+rties 3+e entered into + =e-de4ined ontr+t+

re+tions3ip, it is iper+tie t3+t t3e6 s3od 3onor +nd +d3ere to t3eir ri/3ts

+nd oi/+tions +s st+ted in t3eir ontr+ts, e+se oi/+tions +risin/ 4ro

t3ese 3+e t3e 4ore o4 += et=een t3e ontr+tin/ p+rties +nd s3od e

opied =it3 in /ood 4+it3.;1  Condition Ner +te/ori+6 st+tes t3+t

t3e perit s3+ e 4or t3e exsie se +nd ene4it o4 C or its d6

+t3ori<ed +/ents. D3ie it +6 e tre t3+t #", t3e +ssi/nee o4 "P 1;;, is

+ 100J ssidi+r6 orpor+tion o4 C, reords +re ere4t o4 +n6 eidene

s3o=in/ t3+t t3e 4orer is t3e d6 +t3ori<ed +/ent o4 t3e +tter. )3is Cort

+nnot ondone s3 tter disre/+rd on t3e p+rt o4 C to 3onor its

oi/+tions nder t3e perit. Undoted6, 3+in/ io+ted t3is ondition,

t3e +ssi/nent o4 "P 1;; to #" is oid +nd 3+s no e/+ e44et.

)o oot, #" s?+ndered =3+teer ri/3ts it +ssed it 3+d nder "P

1;;. On '6 1;, "P 1;; =+s extended 4or t=ee ore ont3s or nti

'6 1>. C or #", 3o=eer, neer rene=ed "P 1;; eit3er prior to

or +4ter its expir+tion. )3s, "P 1;; expired 6 non-rene=+ on '6 1>.

Dit3 t3e expir+tion o4 "P 1;; on '6 1>, C ost +n6 ri/3t to t3e

(i=+=+ God Rs3 Are+.

T1 A%%!91# D1<%$" R1%$961# F!<5% !"#

I%%:1% T!5 T/!"%;/1# !?51/ 51

P/$0:97!5$" $? Apex Mining Co., Inc. v.

Garcia 

;0    Premiere %evelopment Ban; v. Court of ppeals, >71 P3i. 70>, 71 200>9.;1  Id.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 25/46

#" +sserts t3+t t3e 2; 'ne 200 (eision reersed t3e 1 '6 11

(eision o4 t3e Cort en banc entited,  pex !ining Co.+ 5nc. v. /arcia.B;2

)3e +ss+ied (eision (I( NO) oertrn t3e 1 '6 11 (eision

in pex !ining Co.+ 5nc. v. /arcia.

 

It st e pointed ot t3+t =3+t  pex !ining Co.+ 5nc. v. /arcia

resoed =+s t3e isse o4 8<, 215811" A;1> !"# MMC, !6!91# 5%19? 

$? 51 ;/$;1/ ;/$<1#:/1 " !<:/"7 51 /75 5$ ;/$%;1<5 !"# 5$

1>;9$/1  in t3e A/s+n-(++o-#ri/+o orest Resere. Apex re/istered its

(e+r+tions o4 !o+tion (O!9 =it3 t3e t3en G#, =3ie C =+s

/r+nted + perit to prospet 6 t3e re+ o4 orest (eeopent (9

+nd =+s sse?ent6 /r+nted +n expor+tion perit 6 t3e G#. )+@in/

into onsider+tion Presidenti+ (eree No. >;, =3i3 proides t3+t inin/

ri/3ts =it3in 4orest reser+tion +n e +?ired 6 initi+6 +pp6in/ 4or +

 perit to prospet =it3 t3e ( +nd sse?ent6 4or + perit to expore

=it3 t3e G#,B t3e Cort t3erein red t3+t C ++ied itse4 o4 t3e

 proper proedre to +id6 oper+te =it3in t3e 4orest resere or reser+tion.

D3ie it is tre t3+t pex !ining Co.+ 5nc. v. /arcia setted t3e isse

o4 =3i3 et=een Apex +nd C =+s e/+6 entited to expore in t3e

dispted +re+, s3 ri/3ts, t3o/3, =ere extin/is3ed 6 %:2%1:1"5 161"5%

t3+t tr+nspired +4ter t3e deision =+s pro/+ted. )3ese sse?ent

eents, =3i3 =ere not +ttend+nt in  pex !ining Co.+ 5nc. v. /arcia;; d+ted

1 '6 11, +re t3e 4oo=in/:

19 t3e expir+tion o4 "P 1;; 6 non-rene=+ on '6 1>E

;2  #pr+ note 1 +t 28>.;;  #pr+ note 1 +t 28;-28>.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 26/46

29 t3e tr+ns4erK+ssi/nent o4 "P 1;; to #" on 1 er+r6 1>=3i3 =+s done in io+tion to t3e ondition o4 "P 1;;

 prosriin/ its tr+ns4erE

;9 t3e tr+ns4erK+ssi/nent o4 "P 1;; to #" is =it3ot e/+ e44et4or io+tin/ P( >; =3i3 +nd+tes t3+t t3e +ssi/nent o4 

inin/ ri/3ts st e =it3 t3e prior +ppro+ o4 t3e #eret+r6 o4 

t3e ("NR.

oreoer, in "outheast !in$anao /ol$ !ining Corporation v. Balite

 Portal !ining Cooperative,;> t3e Cort, t3ro/3 Assoi+te 'stie Conseo

Ln+res-#+nti+/o no= retired9, de+red t3+t  pex !ining Co.+ 5nc. v.

/arcia did not de+ =it3 t3e isses o4 t3e expir+tion o4 "P 1;; +nd t3e

+idit6 o4 t3e tr+ns4er o4 "P 1;; to #", vi< :

N151/ <!" 51 A;1> M""7 <!%1 ?$/1<9$%1 !"=

:1%5$" ;1/5!""7 5$ 51 <$"5":"7 6!9#5= $? EP N$. &** $"

7/$:"#% 8< !/$%1 !?51/ 51 :#701"5 " %!# <!%1 8!%;/$0:97!51#. W91 5 % 5/:1 5!5 51 A;1> M""7 <!%1 %15591#

51 %%:1 $? 8$ 215811" A;1> !"# M!/<$;;1/ 6!9#9= !<:/1#

0""7 /75% $61/ 51 #%;:51# !/1! 2= !6!9"7 $? 51 ;/$;1/

;/$<1#:/!9 /1:%51% 0!"#!51# 2= 9!8, 5 <1/5!"9= ## "$5

#1!9 85 51 :1%5$" /!%1# 2= 51 $;;$%5$/% " 51

C$"%$9#!51# M"1% <!%1%, .1., 8151/ EP N$. &** !# !9/1!#=

1>;/1# !"# /10!"1# 6!9# %:2%1:1"5 5$ 5% 5/!"%?1/ 2=

M!/<$;;1/ 5$ ;155$"1/. "p3+sis sppied.9

D3+t is ore ree+in/ is t3+t in t3e Resotion d+ted 2 Noeer 

12, resoin/ t3e otion 4or reonsider+tion o4  pex !ining Co.+ 5nc. v.

/arcia+ t3e Cort +ri4ied t3+t t3e rin/ on t3e s+id deision =+s indin/

on6 et=een Apex +nd C +nd =it3 respet t3e p+rti+r isse r+ised

t3erein. +ts +nd isses not +ttend+nt to t3e s+id deision, +s in t3ese +ses,

+re not setted 6 t3e s+e. A portion o4 t3e disposition o4 t3e pex !ining 

Co.+ 5nc. v. /arcia Resotion d+ted 2 Noeer 12 derees:

x x x )3e deision rendered in t3is +se is <$"<9:%61 $"9=

215811" 51 ;!/51% 85 /1%;1<5 5$ 51 ;!/5<:9!/ %%:1 1/1" /!%1#

!"# :"#1/ 51 %15 $? </<:0%5!"<1% 1/1" ;/16!9"7. In "$ <!%1

;>  #pr+ note 1; +t 81.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 27/46

%$:9# 51 #1<%$" 21 <$"%#1/1# !% ! ;/1<1#1"5 5$ /1%$961 $/ %15591<9!0% $? ;1/%$"%1"551% "$5 ;!/51% 1/15$. Neit3er is it intended to

nsette ri/3ts o4 personsKentities =3i3 3+e een +?ired or =3i3 +6

3+e +red pon rei+ne on +=s p+ssed 6 t3e +ppropri+te +/enies.

"p3+sis sppied.9

T1 I%%:1 $? 51 C$"%55:5$"!95= $? 

P/$<9!0!5$" I% R!%1# B19!51#9=

In its +st-dit3 e44ort to s++/e its +se, #" ontends t3+t

Pro++tion No. 27, issed 6 President Gori+ ++p+/+-Arro6o +nd

de+rin/ t3e (i=+=+ God Rs3 Are+ +s + iner+ reser+tion, is in+id

on t3e /rond t3+t it +@s t3e onrrene o4 Con/ress +s +nd+ted 6

#etion >, Artie FII o4 t3e ConstittionE #etion 1 o4 Repi At No.

;02E #etion 1> o4 "xetie Order No. 22, ot3er=ise @no=n +s t3e

Adinistr+tie Code o4 187E #etion 5+9 o4 Repi At No. 758, +nd

#etion >+9 o4 Repi At No. 57.

It is =e-setted t3+t =3en ?estions o4 onstittion+it6 +re r+ised,

t3e ort +n exerise its po=er o4 dii+ reie= on6 i4 t3e 4oo=in/

re?isites +re present: 19 +n +t+ +nd +ppropri+te +se existsE 29 t3ere is +

 person+ +nd sst+nti+ interest o4 t3e p+rt6 r+isin/ t3e onstittion+

?estionE ;9 t3e exerise o4 dii+ reie= is pe+ded +t t3e e+riest

opportnit6E +nd >9 t3e onstittion+ ?estion is t3e lis mota o4 t3e +se.

)+@in/ into onsider+tion t3e 4ore/oin/ re?isites o4 dii+ reie=, it

is re+di6 e+r t3+t t3e t3ird re?isite is +sent. )3e /ener+ re is t3+t t3e

?estion o4 onstittion+it6 st e r+ised +t t3e e+riest opportnit6, so t3+t

i4 it is not r+ised in t3e pe+din/s, ordin+ri6 it +6 not e r+ised +t t3e tri+E

+nd i4 not r+ised in t3e tri+ ort, it =i not e onsidered on +ppe+.;5 

;5   !atibag v. Benipao, >2 P3i. 55>, 578-57 20029.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 28/46

In t3e inst+nt +se, it st e pointed ot t3+t in t3e Rep6 to

Respondent #"s Consoid+ted Coent 4ied on 20 +6 200;, A

entioned Pro++tion No. 27, =3i3 =+s issed on 25 Noeer 2002.

)3is pro++tion, +ordin/ to t3e A, 3+s rendered #"s +i oer 

t3e ontested +re+ oot, +s t3e President 3+s +re+d6 de+red t3e s+e +s +

iner+ reser+tion +nd +s +n enironent+6 riti+ +re+. #" did not pt

to isse t3e +idit6 o4 s+id pro++tion in +n6 o4 its pe+din/s despite

neros opportnities to ?estion t3e s+e. It =+s on6 +4ter t3e +ss+ied

(eision =+s pro/+ted -- i.e., in #"s otion 4or Reonsider+tion o4 

t3e ?estioned (eision 4ied on 1; '6 200 +nd its otion 4or Re4err+ o4 

t3e C+se to t3e Cort "n +n +nd 4or Or+ Ar/ents 4ied on 22 A/st

200 -- t3+t it +ss+ied t3e +idit6 o4 s+id pro++tion.

 

Cert+in6, posin/ t3e ?estion on t3e onstittion+it6 o4 Pro++tion

 No. 27 4or t3e 4irst tie in its otion 4or Reonsider+tion is, indeed, too

+te.; 

In 4+t, t3is Cort, =3en it rendered t3e (eision it ere6 reo/ni<ed

t3+t t3e ?estioned pro++tion +e 4ro + o-e?+ r+n3 o4 

/oernent, =3i3 entited it to + stron/ presption o4 onstittion+it6.;7

)3e presption o4 its onstittion+it6 st+nds in+s3 +s t3e p+rties in t3e

inst+nt +ses did not ?estion its +idit6, 3 ess present +n6 eidene to

 proe t3+t t3e s+e is nonstittion+. )3is is in ine =it3 t3e preept t3+t

+dinistr+tie iss+nes 3+e t3e 4ore +nd e44et o4 += +nd t3+t t3e6

 ene4it 4ro t3e s+e presption o4 +idit6 +nd onstittion+it6 eno6ed

 6 st+ttes.;8 

;  mali v. Exececutive "ecretar /uingona+ Jr.+ ;5 P3i. 77, 87 19.;7  "enate of the Philippines v. Ermita, G.R. No. 1777, 20 Apri 200, >88 #CRA 1, .;8    !irasol v. %epartment of Public Wor;s an$ Digh#as, G.R. No. 1587;, 8 'ne 200,

>0 #CRA ;18, ;>7-;>8.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 29/46

P/$<9!0!5$" N$. 3 I% " H!/0$"= 85A/5<91 XII, S1<5$" , $? 51 C$"%55:5$"

At +n6 r+te, een i4 t3is Cort =ere to onsider t3e +r/ents

 e+ted6 r+ised 6 #", s+id +r/ents +re not eritorios.

#" +sserts t3+t Artie FII, #etion > o4 t3e Constittion, +rs t3e

President 4ro exdin/ 4orest reseresKreser+tions +nd pro+iin/ t3e

s+e +s iner+ reser+tions, sine t3e po=er to de-+ssi46 t3e resides in

Con/ress.

#etion >, Artie FII o4 t3e Constittion re+ds:

)3e Con/ress s3+ +s soon +s possie, deterine 6 += t3espei4i iits o4 4orest +nds +nd n+tion+ p+r@s, +r@in/ e+r6 t3eir  ond+ries on t3e /rond. )3ere+4ter, s3 4orest +nds +nd n+tion+ p+r@s

s3+ e onsered +nd +6 not e inre+sed nor diinis3ed, exept 6

+=. )3e Con/ress s3+ proide, 4or s3 periods +s it +6 deterine,e+sres to pro3iit o//in/ in end+n/ered 4orests +nd in =+ters3ed +re+s.

)3e +oe-?oted proision s+6s t3+t t3e +re+ oered 6 4orest +nds

+nd n+tion+ p+r@s +6 not e exp+nded or reded, ness prs+nt to + +=

en+ted 6 Con/ress. Ce+r in t3e +n/+/e o4 t3e onstittion+ proision is

its prospetie tenor, sine it spe+@s in t3is +nner: Congress shall as soon

as possible.B It is on6 +4ter t3e spei4i iits o4 t3e 4orest +nds s3+ 3+e

 een deterined 6 t3e e/is+tre =i t3is onstittion+ restrition +pp6.

#" does not +e/e nor present +n6 eidene t3+t Con/ress 3+d +re+d6

en+ted + st+tte deterinin/ =it3 spei4i iits 4orest +nds +nd n+tion+

 p+r@s. Considerin/ t3e +sene o4 s3 +=, Pro++tion No. 27 od not3+e io+ted #etion >, Artie FII o4 t3e 187 Constittion. In  P5C:P 

 0esources+ 5nc. v. Base !etals !ineral 0esources Corporation+3  t3e Cort

3+d t3e o+sion to sii+r6 re in t3is 4+s3ion:

;  G.R. No. 1;50, (eeer 200, 510 #CRA >00, >1.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 30/46

x x x #e. >, Art. FII o4 t3e 187 Constittion, on t3e ot3er 3+nd,

 proides t3+t Con/ress s3+ deterine t3e spei4i iits o4 4orest +nds+nd n+tion+ p+r@s, +r@in/ e+r6 t3eir ond+ries on t3e /rond. One

t3is is done, t3e +re+ t3s oered 6 s+id 4orest +nds +nd n+tion+ p+r@s

+6 not e exp+nded or reded exept +so 6 on/ression+ e/is+tion.

S"<1 C$"7/1%% !% =15 5$ 1"!<5 ! 9!8 #151/0""7 51 %;1<?< 905% $? 

51 ?$/1%5 9!"#% <$61/1# 2= P/$<9!0!5$" N$. *3 !"# 0!/"7 <91!/9=

5% 2$:"#!/1% $" 51 7/$:"#, 51/1 <!" 21 "$ $<<!%$" 5!5 <$:9# 761

/%1 5$ ! 6$9!5$" $? 51 <$"%55:5$"!9 ;/$6%$" .

#etion >, Artie FII o4 t3e Constittion, +ddresses t3e onern o4 t3e

dr+4ters o4 t3e 187 Constittion +ot 4orests +nd t3e preser+tion o4 

n+tion+ p+r@s. )3is =+s ro/3t +ot 6 t3e dr+4ters +=+reness +nd 4e+r 

o4 t3e ontinin/ destrtion o4 t3is ontr6s 4orests.>0  In ie= o4 t3is

onern, Con/ress is t+s@ed to 4ix 6 += t3e spei4i iits o4 4orest +nds

+nd n+tion+ p+r@s, +4ter =3i3 t3e trees in t3ese +re+s +re to e t+@en +re

o4.>1  $ene, t3ese 4orest +nds +nd n+tion+ p+r@s t3+t Con/ress is to deiit

t3ro/3 + += od e 3+n/ed on6 6 Con/ress.

In +ddition, t3ere is not3in/ in t3e onstittion+ proision t3+t

 pro3iits t3e President 4ro de+rin/ + 4orest +nd +s +n enironent+6

riti+ +re+ +nd 4ro re/+tin/ t3e inin/ oper+tions t3erein 6 de+rin/

it +s + iner+ reser+tion in order to preent t3e 4rt3er de/r+d+tion o4 t3e

4orest enironent +nd to resoe t3e 3e+t3 +nd pe+e +nd order proes

t3+t eset t3e +re+.

A oser ex+in+tion o4 #etion >, Artie FII o4 t3e Constittion +nd

Pro++tion No. 27 ree+s t3+t t3ere is not3in/ ontr+ditor6 et=een t3e

t=o. Pro++tion No. 27, + e+sre to +tt+in +nd +int+in + r+tion+ +ndorder6 ++ne et=een soio-eonoi /ro=t3 +nd enironent+

 protetion, ies =it3 t3e onstittion+ poi6 o4 preserin/ +nd protetin/

>0  Reords o4 t3e Constittion+ Coission, &o. III, pp. 52-5;.>1  Id.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 31/46

t3e 4orest +nds 4ro ein/ 4rt3er de+st+ted 6 dend+tion. In ot3er =ords,

t3e pro++tion in ?estion is in ine =it3 #etion >, Artie FII o4 t3e

Constittion, +s t3e 4orer 4osters t3e preser+tion o4 t3e 4orest enironent

o4 t3e (i=+=+ +re+ +nd is +ied +t preentin/ t3e 4rt3er de/r+d+tion o4 

t3e s+e. )3ese oeties +re t3e er6 s+e re+sons =36 t3e set

onstittion+ proision is in p+e.

D3+t is ore, risprdene 3+s reo/ni<ed t3e poi6 o4 0:95;91

9!"# :%1  in or +=s to=+rds t3e end t3+t t3e ontr6s preios n+tr+

resores +6 e r+tion+6 expored, deeoped, tii<ed +nd onsered.>2  It

3+s een 3ed t3+t 4orest reseres or reser+tions +n +t t3e s+e tie e

open to inin/ oper+tions, proided + prior =ritten e+r+ne 6 t3e

/oernent +/en6 3+in/ risdition oer s3 reser+tion is ot+ined. In

ot3er =ords iner+ +nds +n exist =it3in 4orest reser+tions. )3ese t=o

ters +re not +nti-t3eti+. )3is is +de +ni4est i4 =e re+d #etion >7 o4 

Presidenti+ (eree No. 705 or t3e Reised orestr6 Code o4 t3e P3iippines,

=3i3 proides:

inin/ oper+tions in 4orest +nds s3+ e re/+ted +nd ondted

=it3 de re/+rd to protetion, deeopent +nd tii<+tion o4 ot3er sr4+e

resores. L$<!5$", ;/$%;1<5"7, 1>;9$/!5$", :59@!5$" $/1>;9$5!5$" $? 0"1/!9 /1%$:/<1% " ?$/1%5 /1%1/6!5$"%  s3+ e

/oerned 6 inin/ +=s, res +nd re/+tions. "p3+sis sppied.9

Aso, #etion o4 Repi At No. 7>2 or t3e inin/ At o4 15, st+tes

t3+t inin/ oper+tions in resered +nds ot3er t3+n iner+ reser+tions,

s3 +s 4orest reseresKreser+tions, +re +o=ed, vi< :

M""7 $;1/!5$"% " /1%1/61# 9!"#% $51/ 5!" 0"1/!9

/1%1/6!5$"% +6 e ndert+@en 6 t3e (ep+rtent, set to iit+tions+s 3erein proided. In t3e eent t3+t t3e (ep+rtent +nnot ndert+@e s3

+tiities, t3e6 +6 e ndert+@en 6 + ?+i4ied person in +ord+ne

>2    P5C:P 0esources+ 5nc. v. Base !etals !ineral 0esources Corporation, spr+ note ; +t

>1.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 32/46

=it3 t3e res +nd re/+tions pro/+ted 6 t3e #eret+r6. "p3+sissppied.9

#ine 4orest reser+tions +n e +de iner+ +nds =3ere inin/

oper+tions +re ondted, t3en t3ere is no +r/ent t3+t t3e dispted +nd,

=3i3 ies =it3in + 4orest reser+tion, +n e de+red +s + iner+

reser+tion +s =e.

R1;:29< A<5 N$. 3 O51/8%1 K"$8"

!% 51 P9;;"1 M""7 A<5 $? &33', %

51 A;;9<!291 L!8

(eterined to riet its rin/ +se, #" t3en +r/es t3+t

Pro++tion No. 27 is in+id, +s it tr+ns/ressed t3e st+ttes /oernin/ t3e

exsion o4 +re+s +re+d6 de+red +s 4orest reseres, s3 +s #etion 1 o4 

Repi At No. ;02,>; #etion 1> o4 t3e Adinistr+tie Code o4 187,

#etion 5+9 o4 Repi At No. 758,>> +nd #etion >+9 o4 Repi At

 No. 57.>5 

Citin/ #etion 1 o4 Repi At No. ;02, =3i3 proides +s

4oo=s:

Upon t3e reoend+tion o4 t3e (iretor o4 orestr6, =it3 t3e+ppro+ o4 t3e (ep+rtent $e+d, t3e President o4 t3e P3iippines %!99

%15 !;!/5 ?$/1%5 /1%1/61% =3i3 s3+ inde dended 4orest +nds 4ro

t3e pi +nds +nd 3e s3+ 6 pro++tion de+re t3e est+is3ent o4 s3 4orest reseres +nd t3e ond+ries t3ereo4, +nd t3ere+4ter s3 4orest

reseres s3+ not e entered, or ot3er=ise disposed o4, t s3+ re+in

inde4inite6 +s s3 4or 4orest ses.

T1 P/1%#1"5 $? 51 P9;;"1% +6, in i@e +nner pon t3ereoend+tion o4 t3e (iretor o4 orestr6, =it3 t3e +ppro+ o4 t3e

(ep+rtent 3e+d, 2= ;/$<9!0!5$", 0$#?= 51 2$:"#!/1% $? !"= %:<

>;  Approed on 17 A/st 11.>>   Approed on 1 'ne 12, t3is st+tte is @no=n +s t3e N+tion+ Inte/r+ted Proteted

Are+s #6ste At o4 12.B>5   )3is At is @no=n +s t3e Copre3ensie A/r+ri+n Re4or !+= o4 18.B It too@ e44et

on 15 'ne 188.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 33/46

?$/1%5 /1%1/61 5$ <$"?$/0 85 %:2%1:1"5 ;/1<%1 %:/61= 2:5 "$5 5$1><9:#1 !"= ;$/5$" 51/1$? 1><1;5 85 51 <$"<://1"<1 $? C$"7/1%%.

Undersorin/ sppied.9

#" sits t3+t t3e 4ore/oin/ proision is t3e /oernin/ st+tte on t3e

exsion o4 +re+s +re+d6 de+red +s 4orest reseres. )3s, +re+s +re+d6

set +side 6 += +s 4orest reseres +re no on/er =it3in t3e pro++tion

 po=ers o4 t3e President to odi46 or set +side 4or +n6 ot3er prposes s3 +s

iner+ reser+tion.

)o oster its ontention t3+t t3e President +nnot disest+is3 4orest

reseres into iner+ reser+tions, #" +@es re4erene to #etion 1>,

C3+pter >, )ite I, oo@ III o4 t3e Adinistr+tie Code o4 187, =3i3 p+rt6

reites:

)3e President %!99 !61 51 ;$81/ 5$ /1%1/61 4or setteent or 

 pi se, +nd 4or spei4i pi prposes, +n6 o4 t3e +nds o4 t3e pi

do+in, 51 :%1 $? 8< % "$5 $51/8%1 #/1<51# 2= 9!8. )3e resered+nd s3+ t3ere+4ter re+in set to t3e spei4i pi prpose indi+ted

nti ot3er=ise proided 6 += or pro++tion. "p3+ses sppied.9

#" 4rt3er ontends t3+t #etion 7 o4 Repi At No. 758, >

=3i3 de+res t3+t t3e disest+is3ent o4 + proteted +re+ s3+ e done 6Con/ress, +nd #etion >+9 o4 Repi At No. 57,>7  =3i3 in trn

re?ires + += p+ssed 6 Con/ress e4ore +n6 4orest resere +n e

re+ssi4ied, iit+te +/+inst t3e +idit6 o4 Pro++tion No. 27.

>  %isestablishment as Protecte$ rea. H D3en in t3e opinion o4 t3e ("NR + ert+in proteted +re+s3od e =it3dr+=n or disest+is3ed, or its ond+ries odi4ied +s =+rr+nted 6 + std6 +nd

s+ntioned 6 t3e +orit6 o4 t3e eers o4 t3e respetie o+rds 4or t3e proteted +re+ +s 3ereinest+is3ed in #etion 11, it s3+, in trn, +dise Con/ress. D%1%5!29%01"5 $? ! ;/$51<51# !/1!

:"#1/ 51 S=%510 $/ 0$#?<!5$" $? 5% 2$:"#!/= %!99 5!1 1??1<5 ;:/%:!"5 5$ !" !<5 $? 

C$"7/1%%.>7 A +ien+e +nd dispos+e +nds o4 t3e pi do+in deoted to or sit+e 4or +/ritre.  N$

/1<9!%%?<!5$" $? ?$/1%5 $/ 0"1/!9 9!"#% 5$ !7/<:95:/!9 9!"#% %!99 21 :"#1/5!1" !?51/ 51

!;;/$6!9 $? 5% A<5 :"59 C$"7/1%%, 5!"7 "5$ !<<$:"5 1<$9$7<!9, #1619$;01"5!9 !"# 1:5=

<$"%#1/!5$"%, %!99 !61 #151/0"1# 2= 9!8, 51 %;1<?< 905% $? 51 ;:29< #$0!".

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 34/46

Pro++tion No. 27, de+rin/ + ert+in portion o4 +nd o+ted in

on@+6o, Coposte+ &+e6, =it3 +n +re+ o4 8,100 3et+res, ore or ess,

+s + iner+ reser+tion, =+s issed 6 t3e President prs+nt to #etion 5 o4 

Repi At No. 7>2, +so @no=n +s t3e P3iippine inin/ At o4 15.B

Pro++tion No. 27 did not odi46 t3e ond+ries o4 t3e A/s+n-

(++o-#ri/+o orest Resere sine, +s e+rier disssed, iner+

reser+tions +n exist =it3in 4orest reseres e+se o4 t3e tipe +nd se

 poi6. )3e etes +nd onds o4 + 4orest reser+tion re+in int+t een i4,

=it3in t3e s+id +re+, + iner+ +nd is o+ted +nd t3ere+4ter de+red +s +

iner+ reser+tion.

ore to t3e point, + pers+ o4 Repi At No. ;02, An At to

Aend Cert+in #etions o4 t3e Reised Adinistr+tie Code o4 117,B

=3i3 =+s +pproed on 17 A/st 11, +nd t3e Adinistr+tie Code o4 

187, s3o=s t3+t on6 t3ose pi +nds de+red 6 t3e President +s

resered prs+nt to t3ese t=o st+ttes +re to re+in set to t3e spei4i

 prpose. )3e tenor o4 t3e ited proisions, n+e6: the Presi$ent of the

 Philippines shall   set apart forest reservesB +nd the reserve$ lan$ shall 

thereafter remain+  spe+@s o4 4tre pi reser+tions to e de+red,

 prs+nt to t3ese t=o st+ttes. )3ese proisions do not +pp6 to 4orest

reser+tions e+rier de+red +s s3, +s in t3is +se, =3i3 =+s pro+ied

=+6 +@ on 27 er+r6 1;1, 6 Goernor Gener+ (=i/3t . (+is nder 

Pro++tion No. ;.

Oer +nd +oe t3+t, #etion 5 o4 Repi At No. 7>2 +t3ori<es

t3e President to est+is3 iner+ reser+tions, to =it:

#e. 5.  !ineral 0eservations. - D3en t3e n+tion+ interest so

re?ires, s3 +s =3en t3ere is + need to presere str+te/i r+= +teri+s4or indstries riti+ to n+tion+ deeopent, or ert+in iner+s 4or 

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 35/46

sienti4i, tr+ or eoo/i+ +e, 51 P/1%#1"5 0!= 1%5!29%0"1/!9 /1%1/6!5$"% :;$" 51 /1<$001"#!5$" $? 51 D/1<5$/

5/$:7 51 S1</15!/=.  inin/ oper+tions in existin/ iner+

reser+tions +nd s3 ot3er reser+tions +s +6 t3ere+4ter e est+is3ed,

s3+ e ndert+@en 6 t3e (ep+rtent or t3ro/3 + ontr+tor x x x."p3+sis sppied.9

It is + rdient+r6 prinipe in e/+ 3erenetis t3+t =3ere t3ere +re

t=o +ts or proisions, one o4 =3i3 is spei+ +nd p+rti+r +nd ert+in6

inoes t3e +tter in ?estion, t3e ot3er /ener+, =3i3, i4 st+ndin/ +one,

=od inde t3e +tter +nd t3s on4it =it3 t3e spei+ +t or proision,

t3e spei+ +t st +s intended e t+@en +s onstittin/ +n exeption to t3e

/ener+ +t or proision, espei+6 =3en s3 /ener+ +nd spei+ +ts or 

 proisions +re ontepor+neos, +s t3e !e/is+tre is not to e presed to

3+e intended + on4it.

$ene, it 3+s eoe +n est+is3ed re o4 st+ttor6 onstrtion t3+t

=3ere one st+tte de+s =it3 + set in /ener+ ters, +nd +not3er de+s

=it3 + p+rt o4 t3e s+e set in + ore det+ied =+6, t3e t=o s3od e

3+roni<ed i4 possieE t i4 t3ere is +n6 on4it, t3e +tter s3+ pre+i

re/+rdess o4 =3et3er it =+s p+ssed prior to t3e /ener+ st+tte. Or =3ere

t=o st+ttes +re o4 ontr+r6 tenor or o4 di44erent d+tes t +re o4 e?+

t3eoreti+ +ppi+tion to + p+rti+r +se, t3e one spei+6 desi/ned

t3ere4or s3od pre+i oer t3e ot3er.

It st e osered t3+t Repi At No. ;02, An At to Aend

Cert+in #etions o4 t3e Reised Adinistr+tie Code o4 117,B +nd t3e

Adinistr+tie Code o4 187, +re /ener+ +=s. #etion 1 o4 Repi At

 No. ;02 +nd #etion 1> o4 t3e Adinistr+tie Code o4 187 re?ire t3e

onrrene o4 Con/ress e4ore +n6 portion o4 + 4orest resere +n e

+id6 exded t3ere4ro. )3ese proisions +re ro+d sine t3e6 de+ =it3

+ @inds o4 exsion or re+ssi4i+tion re+tie to 4orest reseres, i.e.,

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 36/46

4orest resere +re+s +n e tr+ns4ored into + @inds o4 pi prposes, not

on6 t3e est+is3ent o4 + iner+ reser+tion. #etion 5 o4 Repi At

 No. 7>2 is + spei+ proision, +s it spei4i+6 tre+ts o4 t3e est+is3ent

o4 iner+ reser+tions on6. #+id proision /r+nts t3e President t3e po=er 

to pro+i + iner+ +nd +s + iner+ reser+tion, re/+rdess o4 =3et3er 

s3 +nd is +so +n existin/ 4orest reser+tion.

#e. 5+9 o4 Repi At No. 758 proides:

#e. 5. Establishment an$ Extent of the "stem. M )3e

est+is3ent +nd oper+tion+i<+tion o4 t3e #6ste s3+ inoe t3e4oo=in/:

+9 A +re+s or is+nds in t3e P3iippines pro+ied,desi/n+ted or set +side, prs+nt to + +=, presidenti+ deree, presidenti+

 pro++tion or exetie order +s n+tion+ p+r@, /+e re4/e, ird +nd

=idi4e s+nt+r6, =iderness +re+, strit n+tre resere, =+ters3ed,+n/roe resere, 4is3 s+nt+r6, n+tr+ +nd 3istori+ +nd+r@,

 proteted +nd +n+/ed +nds+peKse+s+pe +s =e +s identi4ied ir/in

4orests e4ore t3e e44etiit6 o4 t3is At +re 3ere6 desi/n+ted +s initi+

oponents o4 t3e #6ste. )3e initi+ oponents o4 t3e #6ste s3+ e/oerned 6 existin/ +=s, res +nd re/+tions, not inonsistent =it3 t3is

At.

G+rin/ in t3e 4ore/oin/ ener+tion o4 +re+s oprisin/ t3e initi+

oponent o4 t3e NIPA# #6ste nder Repi At No. 758 is t3e

+sene o4 4orest reseres. On6 proteted +re+s ener+ted nder s+id

 proision +nnot e odi4ied. #ine t3e set +tter o4 Pro++tion No.

27 is + 4orest reser+tion pro+ied +s + iner+ resere, Repi At No.

758 +nnot possi6 e +de +ppi+e. Neit3er +n Pro++tion No.

27 possi6 io+te s+id +=.

#ii+r6, #etion >+9 o4 Repi At No. 57 +nnot e +de

+ppi+e to t3e inst+nt +se.

#etion >+9 o4 Repi At No. 57 re+ds:

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 37/46

A +ien+e +nd dispos+e +nds o4 t3e pi do+in deoted to

or sit+e 4or +/ritre. N$ /1<9!%%?<!5$" $? ?$/1%5 $/ 0"1/!9 9!"#%

5$ !7/<:95:/!9 9!"#% %!99 21 :"#1/5!1" !?51/ 51 !;;/$6!9 $? 5% A<5

:"59 C$"7/1%%, 5!"7 "5$ !<<$:"5 1<$9$7<!9, #1619$;01"5!9 !"#

1:5= <$"%#1/!5$"%, %!99 !61 #151/0"1# 2= 9!8, 51 %;1<?< 905%

$? 51 ;:29< #$0!". Undersorin/ sppied.9

#etion >+9 o4 Repi At No. 57 pro3iits t3e re+ssi4i+tion o4 

4orest or iner+ +nds into +/ritr+ +nds nti Con/ress s3+ 3+e

deterined 6 += t3e spei4i iits o4 t3e pi do+in. A rsor6

re+din/ o4 t3is proision =i re+di6 s3o= t3+t t3e s+e is not ree+nt to

t3e inst+nt ontroers6, +s t3ere 3+s een no re+ssi4i+tion o4 + 4orest or 

iner+ +nd into +n +/ritr+ +nd.

rt3erore, t3e setted re o4 st+ttor6 onstrtion is t3+t i4 t=o or 

ore +=s o4 di44erent d+tes +nd o4 ontr+r6 tenors +re o4 e?+ t3eoreti+

+ppi+tion to + p+rti+r +se, t3e st+tte o4 +ter d+te st pre+i ein/ +

+ter expression o4 e/is+tie =i.>8

In t3e +se +t +r, t3ere is no ?estion t3+t Repi At No. 7>2 =+s

si/ned into += +ter t3+n Repi At No. ;02, t3e Adinistr+tie Code

o4 187,> Repi At No. 758 +nd Repi At No. 57. App6in/ t3e

ited prinipe, t3e proisions o4 Repi At No. ;02, t3e Adinistr+tie

Code o4 187, Repi At No. 758 +nd Repi At No. 57 ited 6

#" st 6ied to #etion 5 o4 Repi At No. 7>2.

C!09$ B!"!#, et al ., C!""$5 S11 R191? 

?/$0 T% C$:/5

>8 Philippine &ational Ban; v. Cru< , G.R. No. 805;, 18 (eeer 18, 180 #CRA 20, 21;.>  )3is += is d+ted 25 '6 187.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 38/46

C+io +n+d +nd 3is /rop +dit t3+t t3e6 +re eers o4 t3e +ite

Cooper+tie. )3e6, 3o=eer, +i t3+t t3e6 +re distint 4ro +ite +nd

oe t3+t t3is Cort reo/ni<e t3e +s prior inin/ o+tors.

Un4ortn+te6 4or t3e, t3is Cort +nnot /r+nt +n6 reie4 t3e6 see@.

Reords ree+ t3+t +t3o/3 t3e6 =ere p+rties to t3e inst+nt +ses e4ore t3e

Cort o4 Appe+s, t3e6 did not 4ie + petition 4or reie= e4ore t3is Cort to

ontest t3e deision o4 t3e +ppe+te ort. )3e on6 petitioners in t3e inst+nt

+ses +re t3e A, #", +ite +nd Apex. Conse?ent6, 3+in/ no

 person+it6 in t3e inst+nt +ses, t3e6 +nnot see@ +n6 reie4 4ro t3is Cort.

A;1>% M$5$" ?$/ C9!/?<!5$" !"#

B!951% M!"?1%5!5$" !"# M$5$"

In its otion 4or C+ri4i+tion, Apex desires t3+t t3e Cort eid+te

t3e +ss+ied (eisions prononeent t3+t inin/ oper+tions, +re no=,

t3ere4ore =it3in t3e 4 ontro o4 t3e #t+te t3ro/3 t3e exetie r+n3B

+nd p+e t3e s+id prononeent in t3e proper perspetie +s t3e

de+r+tion in >a Bugal=B?>aan+ =3i3 st+tes t3+t H 

)3e onept o4 ontro +dopted in #etion 2 o4 Artie FII st e

t+@en to e+n ess t3+n dit+tori+, +-enop+ssin/ ontroE t

neert3eess s44iient to /ie t3e #t+te t3e po=er to diret, restr+in,re/+te +nd /oern t3e +44+irs o4 t3e extr+tie enterprise.50

Apex st+tes t3+t t3e set portion o4 t3e +ss+ied (eision od

send + 3iin/ e44et to potenti+ inestors in t3e inin/ indstr6, =3o +6

 e o4 t3e ipression t3+t t3e #t+te 3+s t+@en oer t3e inin/ indstr6, not +sre/+tor t +s +n oper+tor. It is o4 t3e opinion t3+t t3e #t+te +nnot diret6

ndert+@e inin/ oper+tions.

50  #pr+ note 12 +t 10;.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 39/46

oreoer, Apex is +ppre3ensie o4 t3e 4oo=in/ portion in t3e

?estioned (eisionH )3e #t+te +n +so opt to +=+rd inin/ oper+tions in

t3e iner+ reser+tion to pri+te entities indin/ petitioner Apex +nd

+ite, i4 it =is3es.B It +ers t3+t t3e p3r+se i4 it =is3esB +6 =3isi+6

 e interpreted to e+n + +n@et +t3orit6 o4 t3e +dinistr+tie +t3orit6 to

reet t3e 4orers +ppi+tion 4or +n expor+tion perit een t3o/3 it

opies =it3 t3e presried poiies, res +nd re/+tions.

Apex i@e=ise +s@s t3is Cort to order t3e G to +ept its

+ppi+tion 4or +n expor+tion perit.

+ite e3oes t3e s+e onern +s t3+t o4 Apex on t3e +t+ t+@e-oer 

 6 t3e #t+te o4 t3e inin/ indstr6 in t3e dispted +re+ to t3e exsion o4 

t3e pri+te setor. In +ddition, +ite pr+6s t3+t t3is Cort diret G to

+ept +ites +ppi+tion 4or +n expor+tion perit.

Contr+r6 to t3e ontention o4 Apex +nd +ite, t3e 4ort3 p+r+/r+p3 o4 

#etion 2, Artie FII o4 t3e Constittion +nd #etion 5 o4 Repi At No.

7>2 s+ntions t3e #t+te, t3ro/3 t3e exetie dep+rtent, to ndert+@e

inin/ oper+tions diret6, +s +n oper+tor +nd not +s + ere re/+tor o4 

iner+ ndert+@in/s. )3is is +de e+rer 6 t3e 4ort3 p+r+/r+p3 o4 

#etion 2, Artie FII o4 t3e 187 Constittion, =3i3 proides in p+rt:

#"C. 2. x x x T1 S5!51 0!= #/1<59= :"#1/5!1 %:< !<5651%,

$/ 5 0!= 1"51/ "5$ <$-;/$#:<5$", $"5 61"5:/1, $/ ;/$#:<5$"-

%!/"7 !7/1101"5% 85 F9;"$ <5@1"%, $/ <$/;$/!5$"% $/

!%%$<!5$"% !5 91!%5 %>5= ;1/ <1"5:0 $? 8$%1 <!;5!9 % $8"1# 2=

%:< <5@1"%. x x x. "p3+sis sppied.9

Aso, #etion 5 o4 Repi At No. 7>2 st+tes t3+t t3e inin/

oper+tions in iner+ reser+tions s3+ e ndert+@en 6 t3e (ep+rtent o4 

"nironent +nd N+tr+ Resores or + ontr+tor, to =it:

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 40/46

#"C. 5.  !ineral 0eservations. H D3en t3e n+tion+ interest so

re?ires, s3 +s =3en t3ere is + need to presere str+te/i r+= +teri+s4or indstries riti+ to n+tion+ deeopent, or ert+in iner+s 4or 

sienti4i, tr+ or eoo/i+ +e, t3e President +6 est+is3 iner+

reser+tions pon t3e reoend+tion o4 t3e (iretor t3ro/3 t3e

#eret+r6. M""7 $;1/!5$"% " 1>%5"7 0"1/!9 /1%1/6!5$"% !"# %:<

$51/ /1%1/6!5$"% !% 0!= 51/1!?51/ 21 1%5!29%1#, %!99 21

:"#1/5!1" 2= 51 D1;!/501"5 $/ 5/$:7 ! <$"5/!<5$/  x x x.

"p3+sis sppied.9

Undoted6, t3e Constittion, +s =e +s Repi At No. 7>2,

+o=s t3e exetie dep+rtent to ndert+@e inin/ oper+tions. esides,

 >a Bugal=B?>aan+ ited 6 Apex, did not re4er to t3e 4ort3 sentene o4 

#etion 2, Artie FII o4 t3e Constittion, t to t3e t3ird sentene o4 t3e

s+id proision, =3i3 st+tes:

#"C. 2. x x x )3e expor+tion, deeopent, +nd tii<+tion o4 n+tr+ resores s3+ e nder t3e 4 ontro +nd sperision o4 t3e

#t+te. x x x.

Prs+nt to #etion 5 o4 Repi At No. 7>2, t3e exetie

dep+rtent 3+s t3e option to ndert+@e diret6 t3e inin/ oper+tions in t3e

(i=+=+ God Rs3 Are+ or to +=+rd inin/ oper+tions t3erein to pri+te

entities. )3e p3r+se i4 it =is3esB st e nderstood =it3in t3e ontext o4 

t3is proision. $ene, t3e Cort +nnot dit+te t3is o-e?+ r+n3 to

3oose =3i3 o4 t3e t=o options to seet. It is t3e soe prero/+tie o4 t3e

exetie dep+rtent to ndert+@e diret6 or to +=+rd t3e inin/

oper+tions o4 t3e ontested +re+.

"en +ssin/ t3+t t3e proper +t3orit6 +6 deide to +=+rd t3einin/ oper+tions o4 t3e dispted +re+, t3is Cort +nnot +rro/+te nto itse4 

t3e t+s@ o4 deterinin/ =3o, +on/ t3e +ppi+nts, is ?+i4ied. It is t3e

dt6 o4 t3e +ppropri+te +dinistr+tie od6 to deterine t3e ?+i4i+tions

o4 t3e +ppi+nts. It is on6 =3en t3is +dinistr+tie od6 =3isi+6

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 41/46

denies t3e +ppi+tions o4 ?+i4ied +ppi+nts t3+t t3e Cort +6 inter4ere.

t nti t3en, t3e Cort 3+s no po=er to diret s+id +dinistr+tie od6 to

+ept t3e +ppi+tion o4 +n6 ?+i4ied +ppi+nt.

In ie= o4 t3is, t3e Cort +nnot /r+nt t3e pr+6er o4 Apex +nd +ite

+s@in/ t3e Cort to diret t3e G to +ept t3eir +ppi+tions pendin/

 e4ore t3e G.

SEM% M!"?1%5!5$" !"# M$5$" #!51# ' J!":!/= 44

#" =+nts to ep3+si<e t3+t its predeessor-in-interest, +ropper 

or C, opied =it3 t3e +nd+tor6 expor+tion =or@ pro/r+, re?ired

nder "P 1;;, 6 +tt+3in/ t3ere=it3 ?+rter6 reports on expor+tion =or@ 

4ro 20 'ne 18 to +r3 1>.

It st e osered t3+t t3is is t3e er6 4irst tie +t t3is er6 +te

st+/e t3+t #" 3+s presented t3e ?+rter6 expor+tion reports. ro t3e

e+r6 p3+se o4 t3is ontroers6, #" did not disproe t3e +r/ents o4 t3e

ot3er p+rties t3+t +ropper io+ted t3e ters nder "P 1;;, +on/ ot3er 

io+tions, 6 not op6in/ =it3 t3e +nd+tor6 expor+tion =or@ pro/r+.

 Neit3er did it present eidene 4or t3e +pprei+tion o4 t3e o=er trin+s.

$ene, t3e non-opi+ne =it3 t3e +nd+tor6 expor+tion =or@ pro/r+

=+s not +de +n isse in +n6 st+/e o4 t3e proeedin/s. )3e re is t3+t +n

isse t3+t =+s not r+ised in t3e o=er ort or trin+ +nnot e r+ised 4or 

t3e 4irst tie on +ppe+, +s t3is =od io+te t3e +si res o4 4+ir p+6,

 stie +nd de proess.51  )3s, t3is Cort +nnot t+@e o/ni<+ne o4 t3e

isse o4 =3et3er or not C opied =it3 t3e +nd+tor6 =or@ pro/r+.

51    !ulti=0ealt %evelopment Corporation v. !a;ati -uscan Con$ominium Corporation,

G.R. No. 1>72, 1 'ne 200, >1 #CRA , 2;.

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 42/46

In s, t3is Cort 4inds:

&. )3e +ss+ied (eision did not oertrn t3e 1 '6 11

(eision in pex !ining Co.+ 5nc. v. /arcia.  )3e 4orer =+s

deided on 4+ts +nd isses t3+t =ere not +ttend+nt in t3e +tter,

s3 +s t3e expir+tion o4 "P 1;;, t3e io+tion o4 t3e ondition

eodied in "P 1;; pro3iitin/ its +ssi/nent, +nd t3e

n+t3ori<ed +nd in+id +ssi/nent o4 "P 1;; 6 C to

#", sine t3is +ssi/nent =+s e44eted =it3ot t3e +ppro+

o4 t3e #eret+r6 o4 ("NRE

. #" did not +?ire ested ri/3t oer t3e dispted +re+

 e+se its spposed ri/3t =+s extin/is3ed 6 t3e expir+tion

o4 its expor+tion perit +nd 6 its io+tion o4 t3e ondition

 pro3iitin/ t3e +ssi/nent o4 "P 1;; 6 C to #". In

+ddition, een +ssin/ t3+t #" 3+s + +id expor+tion

 perit, s3 is + ere iense t3+t +n e =it3dr+=n 6 t3e

#t+te. In 4+t, t3e s+e 3+s een =it3dr+=n 6 t3e iss+ne o4 

Pro++tion No. 27, =3i3 p+es t3e dispted +re+ nder t3e

4 ontro o4 t3e #t+te t3ro/3 t3e "xetie (ep+rtentE

*. )3e +ppro+ re?ireent nder #etion 7 o4 Presidenti+

(eree No. >; +ppies to t3e +ssi/nent o4 "P 1;; 6 C

to #", sine t3e expor+tion perit is +n interest in + inin/

e+se ontr+tE

. )3e isse o4 t3e onstittion+it6 +nd t3e e/+it6 o4 

Pro++tion No. 27 =+s r+ised e+ted6, +s #" ?estions

t3e s+e 4or t3e 4irst tie in its otion 4or Reonsider+tion.

"en i4 t3e isse =ere to e entert+ined, t3e s+id pro++tion

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 43/46

is 4ond to e in 3+ron6 =it3 t3e Constittion +nd ot3er 

existin/ st+ttesE

'. )3e otion 4or reonsider+tion o4 C+io +n+d, et al .

+nnot e p+ssed pon e+se t3e6 +re not p+rties to t3e

inst+nt +sesE

. )3e pr+6ers o4 Apex +nd +ite +s@in/ t3e Cort to diret t3e

G to +ept t3eir +ppi+tions 4or expor+tion perits +nnot

 e /r+nted, sine it is t3e "xetie (ep+rtent t3+t 3+s t3e

 prero/+tie to +ept s3 +ppi+tions, i4 eer it deides to

+=+rd t3e inin/ oper+tions in t3e dispted +re+ to + pri+te

entit6E

. )3e Cort +nnot p+ss pon t3e isse o4 =3et3er or not

C opied =it3 t3e +nd+tor6 expor+tion =or@ pro/r+,

+s s3 =+s + non-isse +nd =+s not r+ised e4ore t3e Cort o4 

Appe+s +nd t3e o=er trin+s.

WHEREFORE, preises onsidered, t3e Cort 3ods:

1. )3e otions 4or Reonsider+tion 4ied 6 C+io +n+d, et al . +nd

#ot3e+st ind+n+o God inin/ Corpor+tion +re DENIED  4or +@ o4 

eritE

2. )3e otion 4or C+ri4i+tion o4 Apex inin/ Co., In. +nd t3e

+ni4est+tion +nd otion o4 t3e +ite Con+ Port+ inin/

Cooper+tie, inso4+r +s t3ese otionsK+ni4est+tion +s@ t3e Cort to diret

t3e ines +nd Geo-#ienes re+ to +ept t3eir respetie +ppi+tions

4or expor+tion perits, +re DENIEDE

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 44/46

;. )3e +ni4est+tion +nd Ur/ent otion d+ted 25 '+n+r6 2007 o4 

#ot3e+st ind+n+o God inin/ Corpor+tion is DENIED.

>. )3e #t+te, t3ro/3 t3e "xetie (ep+rtent, s3od it so desire,

+6 no= +=+rd inin/ oper+tions in t3e dispted +re+ to +n6 ?+i4ied

entities it +6 deterine. )3e ines +nd Geosienes re+ +6 proess

expor+tion perits pendin/ e4ore it, t+@in/ into onsider+tion t3e

+ppi+e inin/ +=s, res +nd re/+tions re+tie t3ereto.

SO ORDERED.

MINITA V. CHICO-NAZARIO

Assoi+te 'stie

D" CONCUR:

REYNATO S. PUNO

C3ie4 'stie

  On o44ii+ e+e

ANTONIO T. CARPIO

Assoi+te 'stie

RENATO C. CORONA

Assoi+te 'stie

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 45/46

On o44ii+ e+e

CONCHITA CARPIO MORALES

Assoi+te 'stie

PRESBITERO J. VELASCO, JR.

Assoi+te 'stie

No P+rt9

ANTONIO EDUARDO B. NACHURA

Assoi+te 'stie

TERESITA J. LEONARDO-DE CASTRO

Assoi+te 'stie

On o44ii+ e+eARTURO D. BRION

Assoi+te 'stie

DIOSDADO M. PERALTA

Assoi+te 'stie

LUCAS P. BERSAMIN

Assoi+te 'stie

MARIANO C. DEL CASTILLO

Assoi+te 'stie

ROBERTO A. ABADAssoi+te 'stie

MARTIN S. VILLARAMA, JR.Assoi+te 'stie

8/11/2019 APEXMI~1

http://slidepdf.com/reader/full/apexmi1 46/46

C E R T I F I C A T I O N

Prs+nt to Artie &III, #etion 1; o4 t3e Constittion, it is 3ere6

erti4ied t3+t t3e onsions in t3e +oe (eision =ere re+3ed in

onst+tion e4ore t3e +se =+s +ssi/ned to t3e =riter o4 t3e opinion o4 t3e

Cort.

REYNATO S. PUNOC3ie4 'stie